ACM Research’s Operating Subsidiary ACM Research (Shanghai) Announces Proposed Private Offering of Ordinary Shares

Rhea-AI Summary

ACM Research, Inc. announced a proposed Private Offering by its operating subsidiary, ACM Research (Shanghai), Inc., to offer up to 43.6 million ordinary shares, with gross proceeds of up to RMB 4.5B ($625 million). The offering is intended for research and development, capital expenditures, and working capital, subject to the approval of ACM Shanghai’s shareholders, the review process by the Shanghai Stock Exchange, and the registration process by the China Securities Regulatory Commission. ACM estimates its equity interest in ACM Shanghai would decline to approximately 74.6% from its current equity interest of 82.1% if the full number of shares are sold in the proposed Private Offering.

Insights

Financial Analyst

The announcement by ACM Research Inc. regarding its subsidiary's private offering is a strategic financial move aimed at raising capital for expansion and innovation. The substantial amount of up to RMB 4.5B ($625 million) indicates the company's aggressive approach to funding its research and development efforts, as well as covering capital expenditures and working capital needs. This influx of capital can significantly bolster ACM's financial flexibility, allowing it to pursue growth opportunities and maintain a competitive edge in the semiconductor industry, which is characterized by rapid technological advancements and capital-intensive operations.

Investors should be aware that the dilution effect from the offering could lead to a decrease in existing shareholders' equity percentage. ACM's equity interest in its Shanghai subsidiary is projected to drop from 82.1% to 74.6% if the offering is fully subscribed. This dilution is a common occurrence in private offerings and should be weighed against the potential benefits of the capital raise. The impact on the stock price will depend on investors' perception of the trade-off between the dilution and the potential for future growth fueled by the raised capital.

Market Research Analyst

ACM's decision to conduct a private offering in China is indicative of the strategic importance of the Chinese market for semiconductor companies. China is a key player in the global semiconductor supply chain and has been making significant efforts to achieve self-sufficiency in this sector. By raising capital within China, ACM is likely positioning itself to tap into local growth opportunities and possibly gain favor with Chinese regulators and potential customers in the region. This could provide ACM with a competitive advantage in terms of market access and local partnerships.

However, this move also comes with regulatory and market risks, as the approval process involves the Shanghai Stock Exchange and the China Securities Regulatory Commission. Delays or complications in these processes could affect the timeline and success of the offering. Furthermore, geopolitical tensions and trade uncertainties could influence the market's reception of this offering and ACM's future operations in China.

Legal Expert

ACM's private offering is subject to a multifaceted regulatory landscape, involving both the China Securities Regulatory Commission and the Shanghai Stock Exchange. Compliance with these regulations is crucial for the successful issuance of the ordinary shares. The review process is rigorous, ensuring that ACM meets all the necessary financial and legal criteria to protect qualified investors. The requirement for shareholder approval also underscores the importance of corporate governance and transparency in such transactions.

It's important for stakeholders to understand that this offering is not open to the public and is intended for qualified buyers only, which usually means institutional investors or high-net-worth individuals who meet specific financial criteria. This exclusivity can affect the liquidity and marketability of the shares, as well as the pricing of the offering.

FREMONT, Calif., Jan. 25, 2024 (GLOBE NEWSWIRE) -- ACM Research, Inc. (“ACM”) (NASDAQ: ACMR), a leading supplier of wafer processing solutions for semiconductor and advanced wafer-level packaging applications, today announced that its operating subsidiary, ACM Research (Shanghai), Inc. (“ACM Shanghai”), intends to offer ordinary shares, subject to market conditions and other factors, in a private offering to qualified buyers, in compliance with the requirements of the China Securities Regulatory Commission (the “Private Offering”).

The gross proceeds of the proposed Private Offering of up to RMB 4.5B ($625 million) are intended to be used for research and development, capital expenditures and working capital. The proposed Private Offering is subject to the approval of ACM Shanghai’s shareholders, the review process by the Shanghai Stock Exchange, and the registration process by the China Securities Regulatory Commission.

The proposed Private Offering is for up to 43.6 million ordinary shares, or up to 10% of ACM Shanghai’s share capital prior to the Private Offering. ACM estimates its equity interest in ACM Shanghai would decline to approximately 74.6% from its current equity interest of 82.1% if the full number of shares are sold in the proposed Private Offering.

About ACM Research, Inc.

ACM develops, manufactures and sells semiconductor process equipment for single-wafer or batch wet cleaning, electroplating, stress-free polishing and thermal processes that are critical to advanced semiconductor device manufacturing, as well as wafer-level packaging. ACM is committed to delivering customized, high performance, cost-effective process solutions that semiconductor manufacturers can use in numerous manufacturing steps to improve productivity and product yield. For more information, visit www.acmrcsh.com.

Forward-Looking Statements

Certain statements contained in this press release are not historical facts and may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “plans,” “expects,” “believes,” “anticipates,” “designed,” and similar words are intended to identify forward-looking statements. Forward-looking statements are based on ACM management’s current expectations and beliefs, and involve a number of risks and uncertainties that are difficult to predict and that could cause actual results to differ materially from those stated or implied by the forward-looking statements. A description of certain of these risks, uncertainties and other matters can be found in filings ACM makes with the U.S. Securities and Exchange Commission, all of which are available at www.sec.gov. Because forward-looking statements involve risks and uncertainties, actual results and events may differ materially from results and events currently expected by ACM. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. ACM undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in its expectations with regard to these forward-looking statements or the occurrence of unanticipated events.

© ACM Research, Inc. The ACM Research logo is trademark of ACM Research, Inc. For convenience, this trademark appears in this press release without a ™ symbol, but that practice does not mean that ACM will not assert, to the fullest extent under applicable law, its rights to such trademark.

For investor and media inquiries, please contact:

In the United States:	The Blueshirt Group
	Steven Pelayo
	+1 (360) 808-5154
	steven@blueshirtgroup.co
In China:	The Blueshirt Group Asia
	Gary Dvorchak, CFA
	gary@blueshirtgroup.com

FAQ

What is ACM Research, Inc. (ACMR) announcing?

ACM Research, Inc. announced a proposed Private Offering by its operating subsidiary, ACM Research (Shanghai), Inc., to offer up to 43.6 million ordinary shares, with gross proceeds of up to RMB 4.5B ($625 million).

What are the intended uses of the gross proceeds from the proposed Private Offering?

The gross proceeds from the proposed Private Offering are intended to be used for research and development, capital expenditures, and working capital.

What is the expected decline in ACM's equity interest in ACM Shanghai?

ACM estimates its equity interest in ACM Shanghai would decline to approximately 74.6% from its current equity interest of 82.1% if the full number of shares are sold in the proposed Private Offering.