Shenzhen Longsys Storage Files for Hong Kong IPO, Seeking to Raise Up to Approximately HK$8 Billion
nashnova research
Longsys Electronics is heading for a Hong Kong listing at up to HK$6.28 billion, priced at a roughly 45% discount to its Shenzhen shares — a high-stakes test of whether Hong Kong can absorb yet another memory-chip deal.
Where is the money coming from — and going?
Longsys plans to sell about 26 million shares at up to HK$240.60 each, raising as much as HK$6.28 billion (~US$801 million).
An over-allotment option — letting underwriters sell extra shares if demand is strong — could push the total to about US$1.06 billion.
Proceeds are earmarked for chip design and advanced memory R&D. This means → Longsys is betting the money on closing the technology gap, not on expanding factory capacity.
Trading is expected to begin September 8.
Why sell the stock at almost half price?
The offer price represents a roughly 45% discount to Longsys's A-share closing price of RMB 376.88 last Friday, implying a market cap of up to ~US$24.9 billion.
In plain terms = the same company's stock is being sold in Hong Kong for barely more than half its Shenzhen price.
This reflects two realities: A-share memory valuations are stretched, and Hong Kong investors price mainland memory firms more conservatively. The steep discount is the cost of getting the deal done.
Why did earnings suddenly explode?
First-half revenue more than doubled year-on-year to RMB 24.1 billion; net profit surged over 700× to RMB 10.6 billion.
This means → the "700×" headline looks extreme, but last year's base was near zero — focus on the revenue doubling and the absolute profit figure.
The driver: rising memory prices plus tight wafer supply — a classic supply squeeze that lifted both selling prices and margins.
Who is putting real money on the table?
Cornerstone investors committed to 18.89% of the offering. The lineup: Transsion International (indirect subsidiary of Transsion Holdings), CITIC Securities Asset Management, and Lens Technology Hong Kong.
Lenovo stands out — it is both a cornerstone investor and a Longsys customer. This means → Lenovo's cheque is part financial bet, part supply-chain lock-in.
About 70% of Longsys's revenue comes from overseas, with clients including Dell, Lenovo, Samsung, and Xiaomi — this reflects a company that is far more export-driven than domestic.
Where does Longsys fit in the Hong Kong memory-chip IPO wave?
Last month Innolight (中际旭创) raised about US$6.8 billion in Hong Kong — the city's largest IPO in seven years.
On the mainland, CXMT (长鑫存储) closed a RMB 66.6 billion round last month — China's second-largest IPO ever — and YMTC (长江存储) is reportedly close to listing.
In plain terms = memory-chip companies are rushing to market in a cluster. Longsys is smaller but fast-moving — whether it can fill the book at a steep discount will signal how much appetite Hong Kong still has for the sector.
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