Suiyuan Tech Prices STAR Market IPO, AI Chip Maker Targets 6.12 Billion Yuan Raise
Chinese AI chip designer Suiyuan Tech has announced the pricing details for its initial public offering on the STAR Market. The company set its IPO price at 142.18 yuan per share, with approximately 43.035 million shares to be issued. This pricing would bring the total expected fundraising to around 6.119 billion yuan.
Valuation Approach: Price-to-Sales Ratio in Focus
Suiyuan Tech is not yet profitable, leading it to adopt the price-to-sales (PS) ratio as its primary valuation metric. The company's diluted static PS ratio for 2025 stands at 61.80x, which is below the average of comparable industry peers. This suggests a relatively conservative pricing strategy for the offering.
Using PS ratios instead of price-to-earnings multiples is becoming standard for pre-profitability tech firms listing on the STAR Market. The approach emphasizes future revenue growth potential and addressable market size over current earnings.
Offering Timeline and Market Context
The subscription period for both online and offline investors is scheduled for September 2. Suiyuan Tech's listing will add another significant player to the exchange's hard technology sector, particularly in the competitive AI computing chip space.
- Issue Price: 142.18 yuan/share
- Shares Offered: 43.035 million
- Total Proceeds: ~6.119 billion yuan
- Key Metric: 2025 static PS 61.80x
- Subscription Date: September 2
The IPO comes at a time of accelerated development within China's domestic AI chip industry. The raised capital is expected to support Suiyuan Tech's ongoing R&D investments and market expansion efforts.