AXT subsidiary Tongmei withdraws Shanghai IPO, triggering redemption rights on RMB 324.4 million raised
AXT's majority-controlled subsidiary Tongmei withdrew its pending STAR Market IPO application on June 26, 2026, with Shanghai Stock Exchange acceptance published July 8. The withdrawal triggers redemption rights held by eleven private equity funds that invested an aggregate of RMB 324,404,508 (approximately US$49 million) in Tongmei under the original listing agreements. Each fund may require redemption at its original investment amount without interest, or may continue its investment as Tongmei pursues a Hong Kong Stock Exchange listing focused on indium phosphide wafer substrates; AXT stated it has sufficient funds to cover full redemption if required.
Key facts
- RMB 324,404,508 (approximately US$49 million) raised from eleven private equity funds
- Redemption price equals original amount invested, fixed in RMB, without interest or other return
- Tongmei's withdrawal of STAR Market listing application on June 26, 2026
- Shanghai Stock Exchange published acceptance of withdrawal on July 8, 2026
- Tongmei and Company in discussions with each fund regarding continuation or redemption of investment
- Tongmei intends to pursue listing application on Hong Kong Stock Exchange
- Updated listing application will emphasize indium phosphide (InP) business for optical data transmission and artificial intelligence data center applications
Why it matters
The withdrawal triggers contingent redemption obligations totaling approximately US$49 million that AXT must be prepared to satisfy if the private equity investors elect redemption, while the shift from Shanghai to Hong Kong listing alters the strategic timeline and investor profile for Tongmei's public market entry.
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Derived from 8-K filed 2026-07-08. Not investment advice. View the source filing on SEC.gov →