(July 15): Zhongji Innolight Co is poised to get approval from China’s securities regulator for what is likely to be one of Hong Kong’s biggest listings in years, according to people familiar with the matter.
The go-ahead from the China Securities Regulatory Commission would pave the way for Innolight to seek a hearing with the Hong Kong stock exchange as soon as this week, the people said, asking not to be identified because the information is private. Companies typically seek a hearing from the Hong Kong stock exchange once the CSRC approval is confirmed.
Innolight, which makes optical transceivers used in artificial intelligence and data centres, is considering seeking about US$7 billion in the share sale, the people said. That would be much higher than previous expectations, though details including size and timing of any final regulatory approvals may change, they said.
Representatives for Innolight and the CSRC didn’t immediately respond to requests seeking comment.
Reuters reported in June that Innolight was planning to launch a listing in Hong Kong as soon as mid-July that could raise up to US$7 billion.
Shenzhen-listed Innolight, a supplier to the likes of Nvidia Corp, Alphabet Inc and Meta Platforms Inc, has risen more than 90% this year, leaving it with a market value of 1.3 trillion yuan. The stock soared nearly 400% last year too.
See also: ‘Bad inflation’ ends China’s record streak of price declines
Mainland China-traded firms are selling shares in Hong Kong to support growth. That’s driving a boom in equity offerings in the city, with first-time share sales raising almost US$35 billion already this year, data compiled by Bloomberg show.
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