Advanced Material Unicorn Fujian Deer Technology Ready to Market after 3-Month Pre-IPO

Technology Author: Di Han Editor: Qieqin He Nov 29, 2022 12:05 PM (GMT+8)

China Securities Regulatory Commission accepted Fujian Deer Technology’s ( Chinese: 福建德尔科技) listing counseling files on 24 November, advised by Shenwan Hongyuan Securities. Previously, Fujian Deer Technology announced in September that it had completed a CNY 2.04 billion (USD 285.6 million) pre-IPO round of financing.

New Chemicals

China Securities Regulatory Commission accepted Fujian Deer Technology’s ( Chinese: 福建德尔科技) listing counseling files on 24 November, advised by Shenwan Hongyuan Securities. Previously, Fujian Deer Technology announced in September that it had completed a CNY 2.04 billion (USD 285.6 million) pre-IPO round of financing, and the company had a post-investment valuation of CNY 17.5 billion (USD 2.45 billion).

Fujian Deer Technology was founded in June 2014 with a registered capital of CNY 1.024 billion (USD 143.36 million). According to the company's official website, it is committed to the entire industrial chain of the fluorine chemical industry, mainly engage in the R&D, production, and sales of basic chemical materials, fluorine-containing electronic gases, high purity reagents for semiconductors, and other multi-series fluorine-containing new materials. Its products can apply to semiconductor chips, LED chips, flat panel displays, power and energy storage batteries etc. Fujian Deer Technology's products have entered the supply chain of well-known companies such as Samsung, Toshiba, TSMC, Intel, SMIC, and China State Grid.

Investment in new materials continues to boom, and the advanced materials sector has become popular for new stock issuance. According to third-party statistics, the number of new materials sector listings accounts for about 13%-17% of all the issuance. The ratio has been on an upward trend in recent years.

Chen Kai, a partner of Cowincapital, said that the new materials sector is promising because companies are devoted to many subdivision categories. An anonymous investor in this field also noted that the industry is on the rise, and investors have more difficulty getting a fair valuation of companies and obtaining their shares.

According to Xiangcai Security’s new materials industry weekly report, the price of semiconductor and panel materials rebounded last week, the lithium material area witnessed an adjustment, and all segmentation valuation is still low.

Fujian Deer Technology’s international competitors include The Chemours Company(US) and Gore(US), and its domestic competitors include Sanmei (603379.SH, Chinese: 三美股份) and Zhongxin Flouride (002915.SZ, Chinese:中欣氟材).