Zhongji Xuchuang’s Hong Kong share offering was priced at a discount of approximately 3% to the top end of its indicative price range and about 19% below its A-share price, with a base offering size of approximately HK$53.4 billion, potentially rising to HK$61 billion if the over-allotment option is exercised—making it the largest IPO in Hong Kong in nearly seven years.
Demand was exceptionally strong, prompting the company to close institutional bookbuilding early. Subscription multiples reached several times the number of shares available for sale. The company will officially list on the Hong Kong Stock Exchange on July 30, with single-stock options trading commencing on the same day.
$ZJ INNOLIGHT (03308.HK)$According to reports, the Hong Kong listing was priced at HK$980 per share, making it the largest initial public offering in Hong Kong in nearly seven years.
On July 2, Bloomberg reported that Zhongji Xuchuang finalized the pricing of its Hong Kong IPO at HK$980 per share—below the previously indicated top-end price of HK$1,010, representing a discount of approximately 3%. At this price, the base offering size amounts to approximately HK$53.4 billion (about USD 6.8 billion), potentially expanding to around HK$61 billion (approximately USD 7.8 billion) if the over-allotment option is exercised. The company is scheduled to officially debut on the Hong Kong Stock Exchange on Thursday, July 30, with single-stock options trading launching simultaneously on the same day.
The HK$980 per share price represents a discount of approximately 19% compared to Zhongji Xuchuang’s A-share closing price of RMB 1,046.51 on the Shenzhen exchange last Friday. Despite pricing below the upper end of the range, demand remained robust—according to sources familiar with the matter, the company closed its institutional book one day ahead of schedule last Friday, as early indications of interest from global long-only funds, sovereign wealth funds, and Chinese institutions were sufficient to cover the entire offering, with overall subscription demand reaching several times the number of shares available for sale.
As of this report,$Zhongji Innolight (300308.SZ)$Priced at RMB 1,043.15 per share, with a market capitalization of RMB 1.16 trillion.
Largest Hong Kong IPO in seven years, with overwhelming demand prompting early book closure
$ZJ INNOLIGHT (03308.HK)$This listing will become the largest IPO in Hong Kong since Alibaba’s USD 12.9 billion offering in 2019 and forms a key part of the wave of listings by Chinese artificial intelligence supply chain companies in Hong Kong this year.
Analysts note that Zhongji Xuchuang’s listing epitomizes the continued warming of Hong Kong’s IPO market this year. With a cluster of Chinese AI supply chain firms raising capital in Hong Kong, the city’s total IPO fundraising proceeds for the year are expected to reach a six-year high.
Market response to the offering was exceptionally enthusiastic. According to informed sources, the company closed its institutional book one day early last Friday, as early indications of interest from global long-only investors, sovereign wealth funds, and Chinese funds were already sufficient to cover the entire offering, ultimately resulting in subscription demand reaching several times the number of shares available for sale.
Zhongji Xuchuang is a core supplier of optical modules required for data center construction. The company plans to allocate the proceeds from this offering toward research and development, capacity expansion, supply chain enhancement, mergers and acquisitions, and working capital supplementation.
The lead underwriters for this listing include Goldman Sachs, China International Capital Corporation, Morgan Stanley, and GF Securities. Haitong International Securities, Citigroup, HSBC Holdings, and China Galaxy Securities also participated.
Options trading will be launched concurrently on the listing day.
According toShanghai Securities · China Securities NetworkAccording to reports, the Hong Kong Stock Exchange (HKEX) announced on July 27 that it will launch stock options on Zhongji Xuchuang. If the underlying shares are successfully listed, both monthly-expiry and weekly-expiry options contracts will commence trading simultaneously on Thursday, July 30.
Analysts noted that given market demand for risk management, HKEX typically introduces single-stock options on the same day as major listings to meet institutional investors’ hedging needs.
According to$ZJ INNOLIGHT (03308.HK)$As stated in the announcement released on July 22, the Hong Kong public offering of H-shares commenced on July 22 and is expected to conclude on July 27. The issue price is expected to be announced on or before July 28, with the H-shares officially commencing trading on the Hong Kong Stock Exchange on July 30.
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