PriorTech Nears Crucial Approval for Chinese Subsidiary Access IPO Amid Chip Industry Boom
After repeatedly announcing for at least five years that its Chinese subsidiary Access's IPO was imminent, Israeli tech company PriorTech is approaching a decisive moment. On Friday, PriorTech revealed that the Shenzhen Stock Exchange's listing committee will review Access's prospectus on the upcoming Thursday. If approved, PriorTech expects the Chinese securities regulator to authorize the IPO within about 20 business days, potentially completing the listing by the end of September 2026.
Access specializes in advanced organic substrates and packaging for the semiconductor industry, a sector heavily supported by China to reduce reliance on U.S. and Taiwanese technology. Founded in 2006 by PriorTech's subsidiary Amitak alongside Chinese partners, Access is currently majority-owned by Amitak (40%), which in turn is 74% owned by PriorTech, giving PriorTech an indirect 29.4% stake in Access.
The timing aligns with a surge in China's semiconductor industry, including AI chip development by companies like DeepSeek, reflecting China's push for an independent chip supply chain. In the first half of 2026, at least seven chip companies went public on the Shenzhen exchange. PriorTech itself has benefited from the chip sector's growth, with its main holding Kamatak's stock rising 444% since November 2022, and PriorTech's shares up 336%.
Access reported $290.6 million in sales for 2025, with annual revenues nearing $400 million, a net profit of $42.7 million, and EBITDA of $87.4 million (about 30% of sales). While the IPO valuation is not yet public, market estimates suggest a $200 million raise for up to 15% of Access, implying a pre-money valuation around $1.1 billion.
PriorTech CEO Rafi Amit acknowledged market skepticism due to the complexities of Chinese regulations but views the listing committee review as a positive sign. He explained delays were caused by a key partner's bankruptcy in 2021, which required a regulatory pause. Amit said the IPO will help assign a market value to Access, which the market currently undervalues, and eventually allow PriorTech to monetize its stake after a three-year lock-up.
Despite progress, some investors remain cautious about the IPO's long-term economic impact due to dividend restrictions and the general discount applied to Chinese assets by Western investors. However, Access's focus on a strategically important sector for the Chinese government may support its valuation and growth prospects.
