Zhongji Innolight Sets HK IPO at HK$980, Raises Over HK$53.4 Billion

Zhongji Innolight priced its Hong Kong IPO at HK$980 per share, representing a discount of approximately 3% from the top of the indicative range of HK$1,010 and a discount of about 21% from its latest A-share closing price. Based on this price, the basic offering raised approximately HK$53.4 billion. If the over-allotment option is fully exercised, the total fundraising could increase to about HK$61.4 billion. The company plans to globally offer 54.5 million H shares, with each board lot comprising 50 shares, resulting in an entry cost of approximately HK$51,000. The H shares are scheduled to begin trading on the Hong Kong Stock Exchange on July 30.

The IPO received strong market demand. As of July 27, the public tranche attracted approximately HK$71.99 billion in margin financing, representing an oversubscription of more than 13 times. Institutional demand was equally robust, with the book fully covered on the first day, prompting the company to close the international placement one business day earlier than originally planned, on July 24. According to the prospectus, the offering included 33 cornerstone investors, such as Temasek, Abu Dhabi Investment Authority, Hillhouse, BlackRock, Alibaba, and Tencent, with total subscriptions of approximately HK$27 billion, accounting for over 49% of the total offering.

On July 27, the Hong Kong Stock Exchange announced that on the listing date of Zhongji Innolight, it would simultaneously launch weekly and monthly options and listed derivative warrants, and include the stock in the designated list for short selling. This arrangement is typically applied to stocks with higher market capitalization and liquidity, and similar treatment was granted to companies such as Luxshare Precision, CATL, Baidu, and Kuaishou upon their listings.

Zhongji Innolight is a leading global provider of optical interconnect solutions. Its products transmit data via optical fiber, enabling high-speed, energy-efficient, and low-latency connections in cloud and AI infrastructure. The company plans to allocate approximately 35% of the net proceeds to research and development of optical interconnect products, about 30% to expanding global production capacity, roughly 10% to enhancing supply chain resilience and commercialization capabilities, around 15% to strategic acquisitions and investments, and approximately 10% to working capital.