Cybersecurity firm's shares surge on trading debut
Shares of Qi An Xin Technology jumped 138 percent on Wednesday in its first trading day on the Shanghai STAR Market.
The cybersecurity firm's stock price closed at 133.55 yuan (US$19.07), giving the company a market capitalization of 90.8 billion yuan. This makes it the seventh most valuable company on the STAR Market, although the company, founded in 2014, has yet to turn profitable.
“The board’s listing standards support firms, including Qi An Xin, with core technologies and a long technology transformation cycle to go public and further expand with the help of the capital market,” Qi Xiangdong, chairman of Qi An Xin, said in a statement.
The company's IPO funds will be invested in cybersecurity and defense systems, Qi added.
China’s cybersecurity spending accounts for 1.84 percent of total IT spending, lagging behind figures of developed countries such as 4.78 percent in the US, according to researcher IDC.