A major Chinese technology listing is taking shape in Hong Kong, with data centers and cloud computing driving investor interest.
China’s Ligent Technologies plans to raise approximately HK$5.67 billion, or about US$723 million, in an initial public offering in Hong Kong. The company disclosed the information in a filing with the exchange on September 14.
As highlighted by Reuters
The optical communications equipment manufacturer is offering 172 million shares at HK$32.96 per share.
At that price, Ligent Technologies’ market capitalization will amount to HK$32.398 billion, or approximately US$4.13 billion.
The company is controlled by Chinese technology holding company Hisense. Ligent Technologies had previously estimated that it would raise approximately US$800 million in the offering.
Ligent Technologies manufactures optical transceiver modules, optical chips, and network terminals. Its products are used in data centers, cloud computing, and telecommunications networks.
The company will use the proceeds to research and develop new products and technologies, expand production capacity, and meet general corporate needs.
Trading in Ligent Technologies shares on the Hong Kong Stock Exchange is scheduled to begin on September 22.
Citigroup and CITIC Securities are acting as the joint sponsors of the offering. Cornerstone investors include GigaDevice and Mirae Asset Securities Hong Kong.
The following exchange rate was used for the calculations: US$1 equals HK$7.8425.
