Shanghai, Jan 26, 2026, 07:23 GMT+8 — Premarket
- Hua Hong’s Class A shares on the Shanghai market ended the previous session at 139.76 yuan, slipping 0.6%.
- Investors are gearing up for a Feb. 10 shareholder vote on a significant acquisition and its accompanying fund-raising strategy
- A Hong Kong independent adviser supports the proposals but flags potential issues with dilution and takeover regulations
Hua Hong Semiconductor Ltd’s Shanghai-listed Class A shares open Monday with investors focused not on the weekend but on an upcoming shareholder vote next month that could transform the company.
Central to the story is a planned acquisition of a 12-inch wafer foundry asset alongside a cash-raising effort. This matters now because the stock has surged to an all-time high, and the next key event isn’t earnings — it’s all about governance, votes, and approvals.
The shares ended Friday at 139.76 yuan, slipping 0.58% after reaching a record 147 yuan the previous day. Trading volume hit roughly 17.2 million shares. Since December 18, the stock has climbed around 40%, tightening traders’ tolerance for any delays in deal execution. (StockAnalysis)
On Jan. 22, Hua Hong revealed plans to acquire 97.4988% of Shanghai Huali Microelectronics Corporation through a share-for-share deal. The company will issue 190,768,392 new RMB shares, valuing the transaction at roughly 8.27 billion yuan. Alongside this, Hua Hong announced a “non-public issuance” — a private placement — aiming to raise up to 7.56 billion yuan. Most of the funds will go toward upgrading the acquired business, as well as covering working capital, debt repayment, and fees linked to the deal. (HKEX News)
The shareholder meeting will take place on Feb. 10 at 2:30 p.m. in Shanghai, combining both in-person and online attendance. The agenda includes approval of the acquisition terms, the share issuance for purchasing the target assets, and the related funds placement. (HKEX News)
One key issue is the so-called whitewash waiver under Hong Kong takeover rules, needed when issuing new shares pushes a shareholder’s stake past a threshold that would otherwise trigger a mandatory offer. The circular noted Hua Hong’s concert group could see voting rights climb to around 41.16% after the consideration shares are issued—unless the waiver is granted and approved. Innovax Capital, the independent financial adviser in Hong Kong, called the package “fair and reasonable” and urged shareholders to back it. The recommendation letter was signed by managing director Alvin Kam and director Erica Ling. (HKEX News)
The appraisal documents for the asset purchase referenced comparable Chinese chipmakers such as Nexchip, China Resources Microelectronics, and Silan Microelectronics. (HKEX News)
Hua Hong operates as a wafer foundry, offering manufacturing and related services across specialty process platforms. These include embedded and standalone non-volatile memory, power devices, analog and power management, logic, and radio frequency, per Reuters company data. (Reuters)
The road ahead isn’t straightforward. The plan requires several approvals, and factors like pricing, timing, and buyer interest remain fluid. Any delay or rejection of the waiver could put pressure on a share price that’s already priced for the deal to go through.
The immediate hurdle comes Monday at the STAR Market open. The bigger challenge hits Feb. 10, when shareholders vote and the company must prove it can finance the acquisition without rattling a stock that’s already priced in a lot.
