A Foxconn subsidiary, Foxconn Industrial Internet is its parent vehicle to raise sufficient funds to enable Foxconn to wean itself off from manufacturing devices for Apple Inc and instead align itself towards Made in China 2025 policy by entering into areas that cover smart manufacturing, industrial internet, cloud computing and fifth-generation wireless technologies.
Foxconn Industrial Internet, a subsidiary of Foxconn, the world’s largest contract manufacturer, stated it plans on raising $4.26 billion (27.1 billion yuan) in China, its biggest fund raising exercise in around 3 years.
Foxconn Industrial Internet makes cloud service equipment, electronic devices and industrial robots.
It plans on offering 1.97 billion shares at 13.77 yuan per share on the Shanghai stock exchange, as per its filing to the stock exchange filed late on Tuesday.
With 10% of its enlarged capital offered in the IPO, Foxconn Industrial Internet would have a valuation of $42.62 billion (271.3 billion yuan) at listing.
The strategic move is widely seen as a vehicle for Foxconn, a major supplier for Apple Inc, to wean itself off from its heavy reliance on manufacturing smartphones for Apple and instead diversify into new areas.
Towards this end, Foxconn, also known as Hon Hai Precision Industry, has signaled that Foxconn Industrial Internet will launch projects in areas including industrial internet, smart manufacturing, cloud computing, and fifth-generation wireless technologies.
Foxconn Industrial Internet’s IPO, is expected to be launched on May 24.