China's Lingyi iTech Guangdong Co., a maker of electronics components and an Apple supplier, successfully raised HK$8.3 billion ($1.1 billion) in its Hong Kong listing. The company priced its offering of 811.8 million shares at HK$10.18 apiece, which was the maximum price sought, indicating strong investor interest. The company even had to reject over 100 orders due to high demand.
This pricing represents a significant discount of nearly 50% compared to Lingyi's Shenzhen-listed shares, which closed at 17.66 yuan on Wednesday. The company's debut on the Hong Kong Stock Exchange is scheduled for 9:00 a.m. local time on June 26.
A substantial portion of the IPO proceeds, approximately 37.6% or HK$3.07 billion, is earmarked for enhancing production capacity and upgrading its core manufacturing processes. Specifically, about HK$1.71 billion will be invested over the next three years to strengthen manufacturing in emerging areas, including high-density AI servers, humanoid robot hardware, and AI optical communication infrastructure. This move aims to capitalize on surging global demand for AI infrastructure and diversify beyond the maturing smartphone market.
Founded in 2006 by billionaire Zeng Fangqin, Lingyi iTech supplies parts for smartphones, tablets, and laptop computers, with major clients including Apple, Huawei, and Samsung. The company has also been actively expanding into areas like humanoid robots, smart glasses, and AI servers, aiming to become a top-tier global supplier in embodied-intelligence hardware. Investor interest was reportedly supported by the current enthusiasm around AI supply chains and an improved tone in Hong Kong's IPO market, according to Glenn Yin, director of research at ACCM.
