Nvidia Supplier Zhongji Xuchuang Lists in Hong Kong, Shares Fall Nearly 2% in Early Trading

Zhongji Xuchuang (300308-CN), a leading Chinese manufacturer of optical communication equipment and supplier to Nvidia (NVDA-US), listed on the Hong Kong Stock Exchange on Thursday (30th). The stock opened at HK$962, down HK$18 or 1.8% from its IPO price of HK$980.

According to Hong Kong 01, the final offering price was set at HK$980 per share, with a global offering of 54.5 million shares, raising approximately HK$52.891 billion in net proceeds.

Zhongji Xuchuang plans to allocate about 35% of the net proceeds to continuous investment in R&D for optical interconnect products; approximately 30% to expanding global production capacity to support product upgrade roadmaps; around 10% to enhancing supply chain resilience and commercialization capabilities; about 15% to strategic acquisitions and investments; and the remaining 10% for working capital and general corporate purposes.

The company secured several cornerstone investors, including Temasek, JPMorgan, BlackRock, Alibaba (BABA-US, 09988-HK), Tencent (00700-HK), and Chow Tai Fook, with total commitments of USD 3.45 billion (approximately HK$27.04 billion). These cornerstone investors are subject to a six-month lock-up period.