China’s Zhongji Innolight, a manufacturer of optical transceivers, will launch a Hong Kong listing on Wednesday and is seeking to raise at least $8 billion, according to three sources with direct knowledge of the matter.
The company will sell the shares at a price up to HK$1,010 ($128.81) each, two of the sources said. That price would represent a 13.2% discount to the company’s Shenzhen-listed stock’s closing price on Monday.
The sources spoke on condition of anonymity as the information is confidential.
Zhongji Innolight did not immediately respond to a request for comment from Reuters.
The deal will be Hong Kong’s largest share sale in nearly seven years since Alibaba Group’s $12.9 billion listing in 2019.
It is also expected to be Asia’s second-largest listing this year after Chinese chipmaker CXMT Corp’s $8.6 billion initial public offering on Shanghai’s STAR market.
Zhongji makes optical transceivers, small devices that turn electrical signals into light signals and back again. They help move large amounts of data through fibre-optic cables and are used in data centres, cloud networks and AI computing systems.
Hong Kong new listings have raised $33.8 billion so far this year, more than double the $16.4 billion raised in the same period last year, according to LSEG data.
The deal comes as Chinese technology companies rush to fund expansion in artificial intelligence infrastructure, where China and the United States are racing to build faster data centres and computing networks.
Reuters
