iPhone builder plans float for cloud unit that could raise $1bn as demand for data transfer products soars
The builder of Apple's iPhone has filed to float its cable and connector unit in Hong Kong in a deal that's thought could raise as much as $1bn (£765m).
Taiwanese firm Hon Hai Precision Industry – known as Foxconn Technology Group – assembles most of Apple's iPhones and many of the other smartphones in use around the world.
The planned initial public offering comes amid growing demand for the firm's cloud computing products that transfer data at high speeds as the world's biggest tech giants rush to corner the booming cloud market.
The likes of Amazon, Google, IBM, Oracle, and Microsoft are locked in a battle for cloud computing market share that has rapidly emerged as a cash cow for an industry that's going through a period of revenue stagnation.
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The cloud race was triggered by the rapid growth of Amazon’s data hosting arm, Amazon Web Services (AWS) which severely undercut competitor prices. AWS is the fastest-growing enterprise software company of all time, bringing in revenue of $7.9bn (£5.6bn) in 2015 and is expected to grow by as much as 50 per cent this year.
Foxconn's planned IPO for its Foxconn Interconnect Technology unit could raise between $500m and $1bn, it was reported by the Wall Street Journal. A final decision on the exact amount the company wants to raise hasn’t been decided.
Foxconn originally planned was to list the business on the Taiwan Stock Exchange and announced plans in June 2013.
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The listing is likely to happen in either the third or fourth quarter of this year, the WSJ reported, citing people familiar with the plans.
Foxconn could not immediately reached for comment.
Bank of America Merrill Lynch, China International Capital and Credit Suisse are running the IPO financials.