Zhaowei Machinery & Electronics retail tranche 56 times oversubscribed

Shenzhen Zhaowei Machinery & Electronics, a mainland manufacturer and designer of precision micro-drive and transmission systems, had a retail tranche for its Hong Kong initial public offering that was 119.3 times oversubscribed on Monday.

The company has drawn HK$23.7 billion from margin loans, data from brokerages showed.

The company plans to offer 26.75 million H shares from Monday to Wednesday, raising to HK$1.97 billion at most. The offer price per share is HK$73.68, with each lot of 100 shares, and the entry fee is HK$7,442.31. 

The company is expected to debut on March 9, with joint sponsors CMB International Securities and Deutsche Bank.

For the nine months ended September 30, 2025, the company recorded a net profit of 182 million yuan (HK$208 million), up 14.3 percent year-on-year, mainly driven by revenue growth, which was primarily fueled by increased sales of automotive products.

It expects to use the net proceeds from the listing in 35 percent for global technology research and development and expanding the product portfolio; 30 percent for global capacity expansion and improving production efficiency; 15 percent for selective global strategic cooperation, investments, and mergers & acquisitions; 10 percent for expanding the global service and sales network and increasing global marketing efforts; and 10 percent for working capital and general corporate purposes.

Gloria Leung