Lingyi iTech Guangdong Co., a Chinese electronics components manufacturer and Apple supplier, successfully raised HK$8.3 billion ($1.1 billion) in its Hong Kong initial public offering. The company priced its 811.8 million shares at the maximum price of HK$10.18 each, reflecting a strong investor interest that led to the rejection of over 100 orders.
This Hong Kong listing is a secondary offering for Lingyi iTech, which is already traded on the Shenzhen stock exchange. The IPO pricing represented a nearly 50% discount to its Wednesday closing price of 17.66 yuan in Shenzhen. Trading of Lingyi's shares on the Hong Kong Stock Exchange commenced on June 26.
A significant portion of the IPO proceeds, approximately 37.6% or HK$3.07 billion, is earmarked for enhancing production capacity and upgrading core manufacturing processes over the next three years. This includes around HK$1.71 billion specifically for strengthening manufacturing in emerging sectors like high-density AI servers, humanoid robot hardware, and AI optical communication infrastructure. The company aims to capitalize on the increasing global demand for AI infrastructure and advanced hardware, as indicated by analyst Glenn Yin, who noted investor interest supported by enthusiasm for AI supply chains.
Founded in 2006 by billionaire Zeng Fangqin, Lingyi iTech supplies parts for smartphones, tablets, and laptop computers, with Apple, Huawei, and Samsung among its key customers. The company has also expanded into robotics, acquiring an 80% stake in a joint venture with robot maker AgiBot and opening a robotics factory in Beijing with a target annual production capacity of 500,000 units by 2030.
