Two high tech companies have started trading on the new technology and innovation board of China. The number of firms now trading on the STAR have now reached 27.
Amlogic Company is one of the new firms that are now listed on the futuristic board. Shanghai Friendess Electronic Technology Company is the other technology firm to start trading on this investment board.
Amlogic is a sytem-on-a-chip manufacturer that designs multimedia solutions for consumer devices. In the past, the company has manufactured Smart TVs and other smart home devices that allow internet-of-things (IoT) to be implemented in ordinary households. The company’s shares started trading at $19.4 per share on Thursday. This is more than 250 percent of the offering price that started at $5.46.
During the first half of 2019, the company reported a revenue of $160 million. This took the year-on-year profits of the company to 10.85 percent indicating robust financial health. The net profit offered to shareholders however, fell by about 18 percent compared to the previous year. This information was revealed in documents submitted by the company to the Shanghai Stock Exchange.
The shares of Shanghai Friendess likewise soared 216 percent to $30.77 at the start of trading. The initial offering of the shares was $9.73.
The first half revenue of the company for this year stood at $24.7 million. Hence, the year-on-year growth of the company went up by 37.73 percent. The net profit offered by Shanghai Friendess to its shareholders rose to $18.3 million which is an improvement of more than 50 percent.
According to Shine News, trading was temporarily halted due to the rapid surge in share prices. The delay lasted around 10 minutes. The Shanghai trading board on the other hand has capped debut share price surges at 44 percent. Trade swings are limited to 10 percent per day for entire trading session.
The STAR board is the latest technology-based stock exchange in China. Its purpose is to raise funds for technology focused companies and to allow new startups to raise the capital funding. The board has welcomed biotech firms, chipmakers and other technology companies. As a result of this board, technology companies in China will have easier access to capital funding.
The concept for the STAR exchange was proposed during November 2018 and the board inaugurated trading in July 2019. Advanced equipment manufacturing, environmental protection, new energy and new materials firms are now trading on the new stock exchange.