Two companies kicked off retail book building for their Hong Kong initial public offerings on Thursday and are expected to debut on Feburary 13.
Artificial intelligence firm Beijing Haizhi Technology attracted about HK$328 million in margin financing orders from brokers, oversubscribing its retail tranche by more than four times.
The company plans to offer 28.03 million shares, with 10 percent allocated to Hong Kong retail investors, at an indicative price range of HK$25.6 to HK$28 per share, aiming to raise up to HK$780 million. Each board lot of 200 shares would cost about HK$5,656.50.
Haizhi ranked fifth among China’s industrial-grade AI agent providers by revenue in 2024, with a market share of 2.8 percent, and ranked first among image-centric AI agent providers, with a market share of around 50 percent, according to Frost & Sullivan. The consultancy said Haizhi was the first Chinese company in the sector to effectively reduce large language model hallucinations using knowledge graphs.
Haizhi reported revenue of 250 million yuan for the first nine months of last year, up 17.6 percent year on year, while its net loss widened 33.3 percent to 210 million yuan, according to its listing documents.
Separately, Shenzhen Woer Heat-Shrinkable Material drew about HK$181 million in margin financing, below its targeted HK$281 million retail fundraising amount.
Woer plans to issue 140 million shares, with 10 percent offered to Hong Kong investors, at a maximum offer price of HK$20.09 per share, raising up to HK$2.81 billion. Each board lot of 200 shares would cost about HK$4,058.50.
Shares of Woer closed at 27.75 yuan on the mainland on Wednesday, valuing the company at 34.96 billion yuan. Its H-share offer price represents a discount of about 35.7 percent to its A-shares, implying an A-share premium of roughly 55.6 percent.
Woer’s core businesses span electronic communications, power transmission and renewable energy, with heat-shrinkable materials accounting for the bulk of its electronic materials revenue. Frost & Sullivan data show Woer ranked first globally in heat-shrinkable materials by revenue in 2024, with a 20.6 percent market share.
