Two Chinese firms aim to raise up to $4 billion from Hong Kong IPO

Two Chinese firms kicked off book buildings for their Hong Kong initial public offering on Monday, aiming to raise up to nearly HK$4 billion combined.

Shanghai Xizhi Technology plans to issue 13.8 million shares at between HK$166.6 and HK$183.2 per share to raise up to HK$2.5 billion. It asks for a minimum investment of HK$2,776 per board lot of 15 shares.

The company focuses on optoelectronic computing, an innovative paradigm that combines the advantages of photonics and electronics, according to its prospectus. 

Alibaba Investment, Singapore’s GIC, and BlackRock are among its cornerstone investors that have pledged to buy US$209.9 million (HK$1.64 billion) of its shares.

Mabwell (Shanghai) Bioscience, meanwhile, is offering 47.1 million shares for up to around HK$1.45 billion. The shares are priced between HK$27.64 and HK$30.71, with a minimum investment of HK$6,204 per board lot of 200 shares.