Innolight Plans Secondary Listing in Hong Kong with Valuation Up to $7 Billion
Miles Bennett
Optical-module leader Zhongji Innolight (中际旭创, 300308.SZ) plans a Hong Kong secondary listing as early as mid-July, raising up to $7 billion — set to be Hong Kong's largest listing this year as AI hardware demand channels capital from Shenzhen to the city.
Where does the $7 billion figure come from — and why did it jump from $5 billion?
Zhongji Innolight initially targeted about $5 billion but raised the goal to roughly $7 billion after strong investor demand during the roadshow.
This means → institutional buyers are bidding up, not waiting — appetite for the AI optical-module space has outpaced the company's own expectations.
The firm has confidentially filed its listing application and aims to secure CSRC overseas-listing clearance by end of June, a mandatory step for Chinese companies issuing shares in Hong Kong.
What does this company make — and why is it worth that much?
Zhongji Innolight manufactures optical modules — the high-speed data-transmission components inside AI data centers — placing it at a critical node in the AI infrastructure supply chain.
In plain terms = NVIDIA's GPUs need optical modules to move data between them; the harder AI pushes compute, the more modules it consumes.
At $7 billion, the deal would surpass Victory Giant Technology (Huizhou)'s $2.73 billion Hong Kong secondary listing completed in April, making it the largest Chinese tech fundraise in Hong Kong in at least 12 months.
Why is Hong Kong tech fundraising suddenly surging?
Per LSEG data, Chinese tech firms have raised $11.24 billion in Hong Kong through IPOs and secondary listings this year, versus just $235.6 million in the same period last year.
This means → the year-on-year jump is nearly 50× — Hong Kong is re-emerging as the go-to offshore fundraising window for Chinese tech.
This reflects two forces converging: AI supply-chain companies need international capital, and global investors want an entry point to bet on China's AI buildout.
Who else is lining up besides Zhongji Innolight?
Apple supplier Luxshare Precision (立讯精密, 002475.SZ) is also preparing a Hong Kong listing, targeting about $3 billion and potentially launching as early as July.
Luxshare received CSRC confirmation for its planned H-share issuance of up to 441 million shares on June 12 — one step ahead of Zhongji Innolight in the approval process.
In plain terms = A-share tech leaders heading to Hong Kong in a group is no longer a one-off — it is a trend, and Hong Kong is becoming A-share tech's second capital pool.
Can the $7 billion valuation hold?
Zhongji Innolight has not responded to Reuters' request for comment; sources declined to be named, citing the private nature of the deal.
Roadshow demand has been strong, but the gap between subscription interest and a public pricing still holds uncertainty — whether the final offer price can anchor at $7 billion is the deal's central test.
This means → how firm the market's conviction in AI hardware really is will soon get a price tag.
Content is for reference only, not financial advice.