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Zhongji Innolight prices HK$53.4 billion Hong Kong IPO below top of range

Zhongji Innolight prices HK$53.4 billion Hong Kong IPO below top of range

The optical module maker set its H-share sale at HK$980 each ahead of a July 30 Hong Kong debut, while its chairman proposed a 4 billion yuan to 8 billion yuan A-share buyback after a sharp stock selloff.

Fact Check
Both Reuters articles independently confirm every element of the claim: the HK$980 per share price, the HK$53.4 billion (~$6.81 billion) total raised, that the price was below the top of the range (HK$1,010 maximum), that it ranks as Asia's second-largest listing of 2026 (behind CXMT's Shanghai IPO), and that it is Hong Kong's biggest listing since Alibaba's 2019 deal. The claim's figure of HK$53.4 billion matches Reuters' HK$53.41 billion.
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Summary

Zhongji Innolight set its Hong Kong listing price at HK$980 per H share, raising HK$53.41 billion ($6.81 billion) by selling 54.5 million shares ahead of a July 30 trading debut, while Chairman and President Liu Sheng separately proposed repurchasing 4 billion yuan to 8 billion yuan of A-shares to support an employee incentive plan. The buyback proposal, to be executed through centralized competitive bidding using the company’s own or self-raised funds, came after the Shenzhen-listed company’s A-shares fell 15.69% on July 28 to 908 yuan, leaving its market capitalization at about 1.01 trillion yuan after a drop of more than 28% in July. Zhongji said the repurchased shares would be used for equity incentives or an employee stock ownership plan, with a buyback period of 12 months from board approval and a price cap of no more than 150% of the stock’s 30-trading-day average before the board approves the plan. The company, a supplier of high-speed optical interconnect products used in cloud computing data centers, wireless networks and telecom transmission, has benefited from AI infrastructure spending. First-quarter 2026 revenue rose 192.12% year on year to 19.5 billion yuan and net profit attributable to shareholders climbed 262.28% to 5.74 billion yuan, exceeding its full-year 2024 net profit of 5.17 billion yuan. Proceeds from the Hong Kong offering are earmarked for research and development, global manufacturing expansion, supply-chain upgrades, acquisitions and working capital.

Terms & Concepts
  • H-share: A share of a mainland China-incorporated company listed in Hong Kong.
  • buyback: A company’s repurchase of its own shares, often used for capital management or employee incentive plans.
  • high-speed optical interconnect: Technology that uses optical components to move large volumes of data quickly between networking and computing systems.