Baidu Inc, Alibaba Group Holdings and Tencent Holdings Ltd have joined a number of state-owned businesses investing in Foxconn Industrial Internet’s $4.3bn IPO.
The Chinese tech giant trio have received 21.79mn shares apiece in the Hon Hai Precision spin-off company as part of its initial public offering.
They form part of a group of 20 investors which purchased a total of 590.8mn shares in the company which makes up 23% of the total IPO size. According to China Money Network, these “strategic investors” were chosen due to their “good market reputation and significant market influence, or being large state-owned companies, or their long-term cooperation with the firm”.
Other investors included Shanghai SDIC Joint Development Private Equity Fund, backed by the State Development and Investmetn Corporation, which bought 72.56mn shares worth about $157.3mn. State-owned investment company Central Huikin Asset Management Ltd bought 58.1mn shares. China Railway Construction Investment Company got 43.57mn shares.
Additionally, China Life Insurance Co Ltd, Happy Life Insurance Co Ltd, New China Asst Management Co Ltd and Huarong Huitong Asset Management Co all purchased shares.
The IPO, worth a total of $4.3bn, is China’s largest since Guotai Junan Securities raised $4.8bn in 2015.