Performance Of Ipo Of Semiconductor Manufacturing International Corporation

3727 words - 15 pages

Corporate Profile of Semiconductor Manufacturing International CorporationIn less than four years, Semiconductor Manufacturing International Corp (SMIC) has become China's largest and the world's fifth-largest chip maker and it embodied the country's high-tech aspirations. Established in 2000, SMIC is headquartered in Shanghai. It has a strong Research and Development Team which is made up of experienced engineers from North America, Europe and Asia, and a network of leading international technology and manufacturing partners. Being an international corporation, SMIC has customer service and marketing offices in China, the U.S., Europe and Japan, and partners in Korea and Israel.SMIC's biggest customers are based outside of China. Its top five clients last year were global heavyweights Samsung Electronics Corp, Toshiba Corp, Infineon Technologies AG, Texas Instruments Inc and Broadcom Corp.In line with its strategic growth and development, SMIC, which is 11.4 percent-held by U.S. tech giant Motorola, plans to use the IPO this year to expand capacity at its Shanghai plant and to build chip foundries in Beijing.SMIC's Hong Kong and New York listing is the world's third largest of 2004. Credit Suisse First Boston and Deutsche Bank are underwriting the IPO, which could value SMIC at up to $7.5 billion based on its plan to sell 20-25 percent of its equity.Vital Statistics for SMICDate Incorporated April 2000Revenue (2Q04) US$221.0 millionTotal Assets (2Q04) US$4,329 millionGlobal Presence China, Japan, Europe and the United StatesThis paper aims to predict the share price movement after the IPO and give a critical commentary about the stock performance. The performance is also benchmarked against the theories predicting IPO share prices. Analysis for the moving of the stock price is also available.Here are some of the financial highlights of the company:Semiconductor Maker's Shares Drop in HK Stock DebutThe public offering of Semiconductor Manufacturing International Corp (SMIC), the biggest of its kind on the Chinese mainland, made a weak debut in Hong Kong Thursday, but company executives and analysts believe it won't reduce its attractiveness for market players.Shanghai-based SMIC's stocks on the Hong Kong Stock Exchange fell 8 percent from its initial public offering (IPO) price of HK$2.69 (34 US cents) on the first day of trading to HK$2.47 (32 US cents).The turnover of its stocks closed at HK$2.42 billion (US$310 million), the second most active in the market.SMIC raised US$1.8 billion during flotation, the third-largest IPO this year.SMIC Chairman, President and CEO Richard Chang said that stock prices are based on the market environment, the mentality of international investors and company performance. He added that the only thing he could control is company performance.Louis Chan, an analyst with Hong Kong-based East Asia Securities, said the fall of SMIC's stock prices was mainly due to market sentiment."Some sellers were panicked by the...

Find Another Essay On Performance of IPO of Semiconductor Manufacturing International Corporation

The Rise & Fall of the Japanese Semiconductor Industry, 1970 – 2000

1831 words - 7 pages The Rise & Fall of the Japanese Semiconductor Industry, 1970 – 2000 Summary: The semiconductor was the created with the innovation of transistor by Bell Corporation. The industry was driven by the of great US electronic giants such as general Electronic, Texas Instruments and others. These US giants conquered most of the world market sharers. However in the ever-changing world economy the market always moves here to there. Nothing was

Control and Conversion of Electrical Power by Power Semiconductor Devices

2203 words - 9 pages Control and Conversion of Electrical Power by Power Semiconductor Devices Power electronics refers to control and conversion of electrical power by power semiconductor devices wherein these devices operate as switches. Advent of silicon-controlled rectifiers, abbreviated as SCRs, led to the development of a new area of application called the power electronics. Prior to the introduction of SCRs, mercury-arc rectifiers were used for controlling

Is the rise of intermodal international logistics affecting the operations of manufacturing companies?

2000 words - 8 pages Intermodal transportation has a significant role in international logistics and has changed the way manufacturing companies operate and do business. The purpose of this paper is to demonstrate that intermodal international logistics affects the operations of manufacturing companies. In particular, the factors contributing to the rise of intermodal transport will be discussed, and also the changes in manufacturing operations that utilise the

Research Report on Toyota Motor Corporation: Importance of Integrated Production System in a Manufacturing firm to Improve Productivity

3101 words - 12 pages 1. Introduction The main idea of this work is to examine the importance of the integrated production system and its implementation in the manufacturing industry. This can be applied in Toyota Motor Corporation a multinational corporation in automotive manufacturing industry operating all over the world. In the area of production and operation management system, various researchers and experts (Groover, 2007; Metaxiotis, et al., 2001; Lejtman

Manufacturing Of Faulty Products

1617 words - 6 pages Manufacturing of Defective Products In his World War II play All My Sons, Arthur Miller tells the story of the Kellers, a suburban family that faces a huge dilemma when an incident of the past arises, and tears the family apart. Joe Keller, the father, had allowed twenty-one cracked cylinder heads to be sold to the United States Air Force for their P-40 fighter planes. These planes crashed in flight because of the defects on the cylinder

Evolution of Manufacturing

1883 words - 8 pages Manufacturing and Production For my first example, I am using motorcycle engines. The first motorcycle engines were steam powered but soon changed to internal combustion engines sourced from ditch-pumps and early aircraft engines all of which were produced in a similar manner. The casting and machining of the casings and cylinders was very primitive but effective. The cavity in the sand is formed by using a pattern (an approximate duplicate

Characteristics of a Corporation

926 words - 4 pages There are many ways a corporation can be classified; however the best way to classify a corporation is by knowing the characteristics that makes a corporation. The unique characteristics of corporations are consist of limited liability of stockholders, free transferability of shares, perpetual existence, and centralized management. In relation to John Marshall who is the “chief justice in 1819 defined corporation as an artificial being

Review of Target Corporation

641 words - 3 pages In 1902, George Dayton bought out the company Goodfellows and renamed it to the “Dayton Dry Goods Company.” An employee named John. F. Geisse thought of the idea of an upscale discount-relating store. In 1962, the Dayton Company used Geisse’s idea and opened its first store in Minnesota called “Target,” currently owned by Target Corporation. With more than 1,750 stores across the country, Target has grown into a household staple brand. In

Analysis of Nike Corporation

2909 words - 12 pages the Cannes Advertising Festival for the second time. That same year Nike’s international sales surpassed their U.S. sales for the first time ever. In the following year Nike acquires the Converse Corporation and also embraces the LIVE STRONG phenomenon and raises millions of dollars for young people with cancer. By 2006, Nike begins to contact the world of technology by partnering up with Apple to launch a new running shoe that is connected to

Analysis of Sonic Corporation

1490 words - 6 pages Analysis of Sonic Corporation In 1953 Sonic Corporation was founded by Tony Smith in Shawnee, Oklahoma under a different name of the Top Hat. Tony Smith started the company as a drive-in restaurant featuring hot dogs, hamburgers, and french-fried onion rings. In the mid-50s Smith was asked by Charles Pappe for assistance in establishing a similar restaurant in a rural town also located in Oklahoma. This was the beginning of a

Systems Evaluation of Riordan Manufacturing

3202 words - 13 pages Riordan Manufacturing, a large international formed plastics company, is currently looking to upgrade outdated systems in the inventory and manufacturing sectors of the business. The company officials believe that the current systems do not integrate well with the systems from other facilities; consequently one manufacturing plant does not have the real time knowledge of the inventories and operations of other facilities. The proposals from an

Similar Essays

The Ipo Of Xyz Construction Inc.

1952 words - 8 pages the IPO and to expand business operations to the national and international markets. It is also encouraging that time was set aside to research employment and labor laws, thus allowing time to formulate an informed decision to move forward with the plans. Lastly, it is imperative to further review company labor laws in order to allow for proper documentation of locally generated rules and regulations such that the legal counsel can certify that

Impact Of Lean Manufacturing And Environmental Management On Business Performance

1339 words - 6 pages Introduction:  In this report we tried to explain the relationship between lean manufacturing practices environmental management practices and environmental performance, business performance outcomes (e.g., market and financial performance).  The hypothesized relationships of this model are tested with data collected from 309 international manufacturing firms (IMSSIV) by using AMOS.  There is an increasing social demand for environmental

Research And Development And Financial Performance Of Uk Manufacturing Firms

1168 words - 5 pages Research and Development and Financial Performance of UK Manufacturing Firms UK manufacturing firms have many factors which influence their financial performance. Research and Development could be a key factor in determining a firms success, however it does not assure financial improvement in all businesses due to the extensive variety of business types. Research and Development can be defined as the scientific

The Protection Of Semiconductor Chip Products

1124 words - 4 pages My paper was written on Protection of Semiconductor Chip Products, which is Chapter 9 of the U.S. Copyright law. The Protection of Semiconductor Chip Products was created in order to protect semiconductor company’s product research and development. However, it has been used in many court case examples including those that are not semiconductors, but simply software or hardware related. Under the protection, the owner has a right to reproduce