SigmaStar Plans $4.2bn IPO to Fuel Growth

Six-year-old SigmaStar Technology, a subsidiary of MediaTek based in Xiamen, China, is planning to raise $424 million through an initial public offering (IPO) on the ChiNext market of the Shenzhen Stock Exchange. The company is targeting a valuation of $4.2 billion, as reported by the Nikkei.

The ChiNext market is known for its focus on startups, making it an attractive platform for SigmaStar's IPO.

According to Frost & Sullivan, SigmaStar generates 80% of its revenues from the sales of chips used in surveillance cameras. The company currently holds a 36.6% share of the global market in this segment.

SigmaStar specializes in the production of integrated circuits (ICs) for various applications, including IP cameras, USB cameras, network video recorders (NVRs), digital video recorders (DVRs), car electronics, sports cameras, smart homes, smart displays, security systems, and automotive devices. In fact, the company holds a dominant market share of 51.8% in the chips used for USB videoconferencing cameras.

Initially, there were reports in May 2021 that SigmaStar would go public on the Shanghai Star market. However, the prospective offer did not materialize, and the company has now shifted its focus to the ChiNext market.