July 23 — Zhongji Innolight, the leading global provider of optical interconnect solutions, plans to raise up to HKD62.4 billion (about USD8 billion) through a secondary listing, which is projected to be Hong Kong’s largest IPO since 2019.
The company intends to issue 54.5 million shares at a maximum price of HKD1,010 (approximately USD128.80) each. This offering represents nearly an 18% discount to its closing price of CNY1,060.80 (roughly USD156.70) in Shenzhen yesterday, aiming to raise HKD55 billion. If the overallotment option is fully exercised, the total proceeds could reach HKD62.4 billion.
Approximately 35% of the HKD55 billion will be allocated to research and development of optical interconnect solutions, 30% will expand global manufacturing capacity for high-speed optical transceivers, 15% will be used for acquisitions and investments within the supply chain, 10% will be dedicated to strengthening supply chain resilience, and the remaining funds will support working capital, according to the prospectus.
The listing features one of the most high-profile and diverse groups of cornerstone investors seen in Hong Kong in recent years.
This includes sovereign wealth funds such as Singapore’s Temasek and Abu Dhabi Investment Authority, Canada’s public pension fund CPP Investments, global asset managers like BlackRock, J.P. Morgan Asset Management, and Wellington Management, as well as prominent private equity firms experienced in the Chinese market, including Hillhouse Capital Advisors, Boyu Capital, CPE Group, and IDG Capital.
Major Chinese internet companies Alibaba Group and Tencent Holdings are also among the cornerstone investors, highlighting the strategic importance of the optical interconnect supply chain for these tech giants. The deal has also attracted notable Hong Kong-based financial firms such as Aspex, Yunfeng Fund, and Chow Tai Fook Enterprises.
Collectively, these cornerstone investors have committed to purchasing nearly 26.8 million shares, or about 49% of the base offering.
Since 2021, the company has been recognized as the world’s largest optical interconnect solutions provider in terms of revenue, holding a 21% share of the global market and capturing 28% of the high-speed data communication optical transceiver segment last year.
Their flagship optical transceivers are used in artificial intelligence clusters and cloud data centers to facilitate high-speed data transfer between servers and switches.
From 2023 through last year, their revenue grew at a compound annual rate of nearly 90%, with net profit increasing at about 123% annually. In the first quarter of this year, the company reported operating revenue of CNY19.5 billion (around USD2.9 billion) and net profit of CNY5.7 billion (about USD847.1 million), nearly half of their total expected earnings for 2024.
An investment expert compared the company’s standing in the global optical module sector to Contemporary Amperex Technology’s role in the power battery industry. The significant discount on the Hong Kong listing compared to the Shenzhen stock price provides room for post-listing share appreciation and indicates the company’s intent to attract long-term international investors and ensure a successful debut, the expert said.
The stock closed 1.1% higher today at CNY1,072.50 per share in Shenzhen. Driven by strong product demand and rapid earnings growth, the stock reached an all-time high of CNY1,416.88 on June 22. Since the end of 2025, the shares have gained 76%, and over the past 12 months, they have nearly nine times their original value.