Shanghai (ZXZC)- Jinan BYD Semiconductor Co.,Ltd., whose majority shareholder is BYD Semiconductor Co.,Ltd., was set up on August 24, according to the business data provider Tianyancha. The move was considered by industry insiders as part of preparations for the resumption of BYD's plan to list its semiconductor unit.

Photo credit: BYD Semiconductor

Involving a registered capital of 4.9 billion yuan ($756.675 million), Jinan BYD Semiconductor has a line of businesses covering the manufacturing and sale of discrete semiconductors and semiconductor lighting devices, the manufacturing of electronic components, and the design of integrated circuit chips, and relevant services.

Among three shareholders, BYD Semiconductor Co.,Ltd. holds 77.75% stake in the newly-built company.

Shenzhen Stock Exchange accepted BYD Semiconductor's IPO application for review in late June this year. According to the draft prospectus, BYD Semiconductor proposed to raise a fund of 2.7 billion yuan ($416.943 million) by issuing no more than 50 million shares. After going public, BYD Company Limited's shareholding in BYD Semiconductor will be diluted to 65.07% from 72.3%.

However, the listing plan was suspended earlier this month due to a regulatory investigation into the advisory law firm.

BYD Semiconductor said it will strive to resume its IPO plan as soon as possible, while whether the law firm will be replaced or not has not been decided yet.