SMIC: right time, right place?

After one of the fastest ramp-ups in history, Chinese foundry SMIC positions its IPO valuation second only to TSMC.

Semiconductor Manufacturing International Company SMIC has set out with one of the richest valuation targets of a China listing in recent years, but tech specialists believe it may be achievable thanks to the $1.5 billion IPO's fortuitous market timing.

With a syndicate consensus price to book range of 2 to 2.5 times post deal or 2.5 to 3 times pre deal, SMIC will rank second only to global leader TSMC, which was trading at 3.2 times 2004 book at Tuesday's close. At these levels, it is being pitched at a significant premium to both UMC and Singapore-based Chartered Semiconductor, which are respectively trading at 1.8 times 2004 book and 1.4 times...

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