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China's Zhongji Innolight, a manufacturer of optical transceivers, will launch a Hong Kong listing on Wednesday and is seeking to raise at least US$8 billion (HK$62.4 billion), according to three sources with direct knowledge of the matter.
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The company will sell the shares at a price up to HK$1,010 each, two of the sources said. That price would represent a 13.2 percent discount to the company's Shenzhen-listed stock's closing price on Monday.
The sources spoke on condition of anonymity as the information is confidential.
Zhongji Innolight did not immediately respond to a request for comment from Reuters.
The deal will be Hong Kong's largest share sale in nearly seven years since Alibaba Group's (9988) US$12.9 billion listing in 2019.
It is also expected to be Asia's second-largest listing this year after Chinese chipmaker CXMT Corp's US$8.6 billion initial public offering on Shanghai's STAR market.
Zhongji makes optical transceivers, small devices that turn electrical signals into light signals and back again. They help move large amounts of data through fibre-optic cables and are used in data centers, cloud networks and AI computing systems.
Hong Kong new listings have raised US$33.8 billion so far this year, more than double the US$16.4 billion raised in the same period last year, according to LSEG data.
The deal comes as Chinese technology companies rush to fund expansion in artificial intelligence infrastructure, where China and the United States are racing to build faster data centers and computing networks.
Reuters
