【NEW IPO】Fourier 3625 Listing Raises Up to 600 Million Maximum　First Day Subscription 270 Million Oversubscribed 8.1 Times　Board Lot Entry Fee 5050 Yuan

Fourier (New Listing Number: 03625) Initial public offering from March 23 to 26. Fourier, a supplier of audio amplifier chips and haptic feedback chips, plans to issue 12 million H-shares, with 5% for public sale in Hong Kong. The offering price ranges from HKD 40 to HKD 50, raising up to HKD 600 million. According to comprehensive brokerage estimates, Fourier has received HKD 270 million in margin subscriptions, with an oversubscription of 8.1 times.

Fourier offers 100 shares per lot, with an entry fee of HKD 5,050.40. The stock is expected to start trading on March 31, with CITIC Securities and Orient Securities serving as joint sponsors.

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Fourier operates through waferless manufacturing, focusing on designing three main types of chips: low-power audio, medium- and high-power audio, and haptic feedback chips, supplying products to consumer electronics, smart vehicles, and other industries.

Ranked 4th among global audio amplifier chip suppliers

Based on 2024 revenue, Fourier ranks 4th among global audio amplifier chip suppliers, 3rd among Chinese suppliers, and 5th among Chinese haptic feedback chip suppliers.

In 2024, it delivered over 400 million audio amplifier chips in China and over 450 million globally.

Products include:

• (1) Low-power audio chips, including two main types: adaptive power control audio chips and portable amplifier audio chips
• (2) Medium- and high-power audio chips
• (3) Haptic feedback chips
• (4) Others, including power management chips

Chip prices have fluctuated in recent years

Notably, the average price per chip has been volatile in recent years. In 2023, the average selling price of low-power audio chips decreased from HKD 1.08 to HKD 0.66 per chip, mainly due to increased sales of adaptive power control audio chips and the company’s low-price strategy to expand market share.

The average price of medium- and high-power audio chips rose from HKD 2.23 to HKD 2.65 in 2023, driven by higher demand for premium models, but fell back to HKD 2.28 in 2024 due to increased demand for lower-priced models.

Revenue from top 5 customers accounts for 88%

In the first 10 months of last year, Fourier recorded revenue of HKD 280 million (RMB equivalent), a decrease of 2.8% year-on-year. The top 5 customers accounted for 88.2% of revenue, with the largest customer contributing 30%. Customer names include Samsung, Xiaomi, vivo, Motorola, and Honor. During this period, the company incurred a loss of HKD 51.776 million, an increase of 10.5%.

Fourier’s current IPO does not include cornerstone investors.

Fourier Semiconductor’s previous funding round was completed in August 2022, with a valuation of HKD 2.78 billion. Pre-IPO investors include Transsion Holdings, known as the “King of African Phones” (Shanghai: 688036), holding nearly 2%; and Fujian Investment & Development, a provincial state-owned capital investment company, holding 1.1%.

Use of net proceeds

• 46.8%: Establish a new R&D center to enhance the R&D capabilities and technological competitiveness of audio amplifier chips
• 17.8%: Purchase automated testing equipment, build internal automation testing and verification lines, and recruit supply chain management engineers
• 17.3%: Seek strategic acquisitions and partnerships to strengthen industry integration and solidify position in the audio amplifier chip industry
• 8.1%: Product marketing and sales
• 10%: Operating capital and general corporate purposes

Source: Fourier Announcement