SMIC seeks to raise 20b yuan selling shares in Shanghai

Shanghai-based chip maker Semiconductor Manufacturing International Corp aims to raise about 20 billion yuan ($2.80 billion) selling shares in Shanghai, the company said in a prospectus.

The move is part of the Hong Kong-listed company's broader push to replenish its cash stock to fund more advanced chip-making production lines.

SMIC was approved by regulators for a separate listing on Shanghai’s high-tech STAR market on Monday.

The company said about 40 percent of the capital raised will be used to build a new manufacturing plant for 12-inch chips, while nearly 40 percent will be used as additional working capital. The remainder will be allocated to reserves for the research and development of advanced technologies.