Corporate ActionJul 8, 2026, 09:36 AM
AXT Subsidiary Tongmei Withdraws STAR Market IPO, Triggers $49M Redemption
AI Summary
AXT Inc.'s majority-controlled subsidiary, Beijing Tongmei Xtal Technology Co., Ltd. (Tongmei), withdrew its initial public offering application from the Shanghai Stock Exchange's STAR Market. This withdrawal triggers a redemption right for 11 private equity funds that invested approximately $49 million (RMB 324.4 million) in Tongmei. AXT and Tongmei now plan to pursue a listing on the Hong Kong Stock Exchange, focusing on the growing indium phosphide (InP) business for high-speed optical data transmission and AI data centers. AXT confirmed it has sufficient funds to redeem the investments if required.
Key Highlights
- Tongmei withdrew its IPO application from the Shanghai STAR Market on June 26, 2026.
- Shanghai Stock Exchange accepted the withdrawal on July 8, 2026.
- Tongmei plans to pursue a listing on the Hong Kong Stock Exchange.
- The new listing application will emphasize indium phosphide (InP) business.
- Withdrawal triggers redemption rights for RMB 324,404,508 (approximately $49 million).
- Eleven private equity funds have the right, but not obligation, to redeem their investments.
- AXT has sufficient funds to cover full redemption if required.
Price Impact
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