The IPOX® Watch: Socionext Inc
COMPANY DESCRIPTION
Founded in 2015 and headquartered in Yokohama, Japan, Socionext is the consolidation of the former system LSI businesses of Fujitsu Semiconductor and Panasonic. Socionext designs, develops, and sells System-on-Chips (SoC) products. The company specializes in Custom SoCs (ASICs) and Application Specific Standard Products (ASSPs) with focus area in application markets including smart devices, 5G networks and data centers, automotives and imaging (e.g. imaging processors for GoPro action cameras).
BUSINESS MODEL
Socionext generates revenue from sales of its SoC solutions and design & development revenue for projects (NRE revenue). As a so-called fabless company, it relies on semiconductor foundries such as TSMC for the assembly and manufacturing of their products, similar to competitors such as Broadcom or Marvell Technology.
IPO HISTORY
On 10/12/2022, Socionext Inc began trading on the Tokyo Stock Exchange Prime Market led by SMBC Nikko Securities and Nomura Securities. The SoC supplier's offer was upsized by more than 55% to offer 18,297,300 shares, all from existing shareholders (Development Bank of Japan, Fujitsu, and Panasonic) at JP¥3,650.00 per share, high-end of its expected price range (JP¥3,480 to JP¥3,650). Socionext was valued at ca. JP¥122.88 billion at offer, with the 15% over-allotment option fully exercised. The shares opened at JP¥3,835 and surged to close the first day higher at JP¥4,200 (+15.07%). Socionext Inc was the largest Japanese initial public offering in 2022.
The company was added to the IPOX® Japan Index (IPJP) on 12/19/2022 and has gained +31.92% since addition to the index.
