Precision manufacturer Lens Technology stated that it aims to raise up to HK$4.77 billion (US$608 million) from its debut in the city, with 262.3 million shares being offered by the Shenzhen-listed company for HK$17.38 to HK$18.18 each.
As seven businesses, including chip designer Fortior and Apple supplier Lens Technology, submitted new listing applications this week, Hong Kong's initial public offering (IPO) boom continued, bringing new hope to the thriving market.
With the remaining portion going to foreign investors, Lens Technology intended to provide Hong Kong investors 11 percent of the base offering.
At the top end of the price range, the IPO gross proceeds might reach HK$6.3 billion if the offer size modification and overallotment options were implemented.
According to the company's suggested schedule, trading was scheduled to start on July 9 under the stock number 6613, and investors may make orders from Monday through July 4. In recent trade, the company's shares listed in Shenzhen dropped 0.3 percent to 22 yuan (US$3.07).
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The sale attracted major investors such as Oaktree Capital, UBS Asset Management Singapore, Olympic Country, and Green Better. They consented to subscribe for IPO shares valued at roughly US$280 million. The only sponsor of the IPO is Citic Securities.
According to its website, Lens Technology was founded in Shenzhen in 1993 by chairwoman Chau Kwan Fei, and its main office is in Liuyang, in the central Hunan region of China. According to the prospectus, Chau was anticipated to own 59.03 percent of the business upon the offering.
Since 2007, the company has been a major supplier of glass to Apple, which has been growing into the fields of extended reality head-mounted displays, humanoid robots, and artificial intelligence glasses.
In the first quarter, the company's net profit increased 43.8 percent to 453.9 million yuan compared to the same period last year.
Due to favorable regulations and alluring values, other mainland-listed businesses looked to issue shares in Hong Kong at the same time as Lens Technology's IPO. As of May 30, they made up over one-fifth of the 211 applications submitted to the Hong Kong exchange.
Fortior Technology, a chip designer, also began its H-share listing plan on Monday. The company plans to offer 16.3 million shares at a maximum price of HK$120.50 apiece in order to raise up to HK$1.96 billion. Ten percent will go to Hong Kong retail investors, with the remaining portion going to the global cohort.
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Beijing Geekplus, a robot manufacturer, stated that it was looking for HK$2.4 billion, while Beijing Shougang Lanzatech, a steel manufacturer, was looking for up to HK$380.62 million and Beijing Xunzhong Communication, a telecommunications company, was aiming for HK$461.2 million from the proceeds of their initial public offerings.
Demand for significant listings, such as Contemporary Amperex Technology's US$5.2 billion offering, has increased due to Hong Kong's improved market mood. This year, significant agreements were also reached with Jiangsu Hengrui Pharmaceuticals, the biggest pharmaceutical company in China based on market value, and Foshan Haitian Flavouring and Food, a manufacturer of condiments.