Zhongji Innolight Co. is expected to price its Hong Kong listing below the maximum target, according to sources familiar with the matter. The listing is anticipated to raise HK$53.4 billion ($6.8 billion), making it Hong Kong's largest initial public offering in seven years. The company is China's leading optical transceiver maker and its IPO would be the city's biggest since Alibaba's $12.9 billion debut in 2019.
The initial proposed share price was up to HK$1,010 ($128.81) per share, representing a 13.2% discount to its Shenzhen-listed stock's closing price. The company had initially discussed a 15% to 20% discount to its Shenzhen shares, but recent market fluctuations have narrowed the gap between its mainland-listed and planned Hong Kong shares.
This listing comes as Chinese technology companies increasingly seek funding for expansion in artificial intelligence infrastructure. Zhongji Innolight manufactures optical transceivers, essential components for data centers, cloud networks, and AI computing systems, which convert electrical signals into light signals and vice-versa. The company has cited consultant CIC as confirming its position as the world's largest optical interconnect solutions provider by revenue for five consecutive years since 2021.
In the three months ending March 31, Zhongji Innolight reported a 192% surge in revenue to 19.5 billion yuan ($2.9 billion) and a 274% jump in profit to 6.32 billion yuan. Its 2025 profit rose 116% to 11.58 billion yuan on revenues of 38.24 billion yuan. The United States was its largest market, accounting for 61.7% of its revenue in the first quarter of this year.
The company plans to allocate the proceeds from the IPO towards research and development, global production expansion, strengthening its supply chain, strategic acquisitions and investments, and general working capital. Hong Kong's new listings have collectively raised $33.8 billion so far this year, which is the highest for the same period since 2021.
