Zhongji Innolight Co., a Shenzhen-traded company specializing in optical transceivers for artificial intelligence (AI) and data centers, has received approval from both China's securities regulator and the Hong Kong stock exchange for a listing that could raise as much as $8 billion. This would mark one of Hong Kong's largest listings in years, specifically since Alibaba Group Holding Ltd.'s $12.9 billion listing in 2019. The company is reportedly planning to start taking orders as early as this week, though details like size and timing remain subject to change.
The potential $8 billion raise is significantly higher than previous expectations, fueled by a 454% rally in Innolight's Shenzhen shares over the past year due to the AI boom, despite a recent 29% drop from its June peak. Innolight has benefited from substantial spending by US tech giants, including Nvidia Corp., Alphabet Inc., and Meta Platforms Inc., on data centers and AI infrastructure, to whom it is a supplier.
Goldman Sachs Group Inc., China International Capital Corp., Morgan Stanley, and GF Securities Co. are serving as joint sponsors for the listing. The move by Innolight is part of a broader trend of Chinese companies in the AI supply chain pursuing offerings in Hong Kong, which have contributed to an increase in first-time share sales in the city. Total funds raised from IPOs in Hong Kong this year have already reached approximately $35 billion, nearing the total for 2025.
