AXT, Inc. Crosses Major Milestone on Tongmei IPO
FREMONT, Calif., July 12, 2022 (GLOBE NEWSWIRE) -- AXT, Inc. (NasdaqGS: AXTI), a leading manufacturer of compound semiconductor wafer substrates, today announced that its subsidiary in China,
Beijing Tongmei Xtal Technology Co., Ltd. (“Tongmei”), was approved by the Shanghai Stock Exchange (“SSE”) for the listing of Tongmei’s shares in an initial public offering (the “IPO”) on the SSE’s
Sci-Tech innovAtion boaRd (the “STAR Market”). The STAR Market IPO remains subject to review and approval by the China Securities Regulatory Commission (“CSRC”) and other authorities. The SSE will
now forward Tongmei’s application to the CSRC for its review and approval.
Management Qualitative Comments
“We consider this to be a major milestone in our effort to complete the STAR Market IPO,” said Morris Young, chief executive officer. “The SSE review process is detailed, thorough, and lengthy. Its approval is an important step because we believe that the CSRC relies heavily on the work performed by the SSE. I want to congratulate our team for their hard work and diligence in getting to this point in the process. Although the timing for the IPO remains uncertain and depends upon many factors beyond our control, the achievement of this milestone adds to our confidence that Tongmei can complete the listing in this calendar year.”
STAR Market Listing is a Lengthy Process
The process of going public on the STAR Market includes several periods of review and, therefore, is lengthy. AXT believes that the SSE review, which has just been completed, is typically the longest part of the process. Subject to the review and approval by the CSRC and other authorities, Tongmei expects to complete the listing in the second half of 2022, probably in Q4 2022. AXT has posted a brief summary of the plan and the process on its website at http://www.axt.com.
About AXT, Inc.
AXT is a material science company that develops and manufactures high-performance compound and single element semiconductor substrate wafers comprising indium phosphide (InP), gallium arsenide (GaAs) and germanium (Ge). The company’s substrate wafers are used when a typical silicon substrate wafer cannot meet the performance requirements of a semiconductor or optoelectronic device. End markets include 5G infrastructure, data center connectivity (silicon photonics), passive optical networks, LED lighting, lasers, sensors, power amplifiers for wireless devices and satellite solar cells. AXT’s worldwide headquarters are in Fremont, California and includes sales, administration and customer service functions. AXT has its Asia headquarters in Beijing, China and manufacturing facilities in three separate locations in China. In addition, as part of its supply chain strategy, the company has partial ownership in ten companies in China producing raw materials for its manufacturing process. For more information, see AXT’s website at http://www.axt.com.