Longcheer gears up for overseas IPO
Shanghai Longcheer Telecommunication Ltd, a Shanghai-based handset design
company, plans to sell its shares for the first time overseas.
A source close
to the deal told Shanghai Daily it would likely be next year on the Singapore
exchange. It would be the first time a Chinese handset design company floats
shares on an overseas market.
The firm will probably receive venture capital
from a Singapore-based company before it issues an initial public offering, said
the source, who declined to be identified.
"We are in talks with some capital
ventures now and I think the IPO won't happen by the end of this year," another
senior official at Longcheer, who also required anonymity, told Shanghai Daily
in a telephone interview yesterday.
Longcheer will probably sell shares on
the Singapore stock market, the source said.
The firm's revenue was 214
million yuan (US$25.78 million) last year. The profit figure was not
Located in Xuhui District, the company designs mobile phones for
domestic vendors, including Shenzhen-listed ZTE Corp, Guangzhou Soutec Group
Technology Co Ltd and Eastern Communications Co Ltd.
A technology gap still
exists between home-grown companies and overseas companies such as Nokia Oyj and
Motorola Inc although domestic handset design companies have grown rapidly in
the past few years.
"Handset design often needs basic semiconductor
technologies and that's the sector Chinese companies lack compared with foreign
rivals," said Li Xuefang, an analyst at Beijing-based CCID Consulting Co Ltd, a
research firm under the Ministry of Information Industry.
In April, US-based
Qualcomm Inc announced it has invested US$14 million as a capital venture into
Chinese handset designer Techfaith Wireless Communication Technology Co
Meanwhile, NEC Corp has built a 50-million-yuan joint venture with
Techfaith in Beijing. Techfaith controlled 70 percent of that