China's Zhongji Innolight sees shares surge after Hong Kong listing approval
Chinese optical transceivers firm Zhongji Innolight saw its shares rise following approval for an $8 billion Hong Kong listing. This deal is expected to be the largest IPO in Hong Kong this year, reflecting a trend of AI-related companies listing in the city.
Why it matters
The surge in IPO activity from AI-linked firms highlights Hong Kong's continued role as a major financial hub for the global artificial intelligence supply chain.
Shares of China's Zhongji Innolight surged as much as 8% Monday before paring some gains, after the company received approval for a major Hong Kong listing worth up to $8 billion on Friday, in what is likely to be one of the city's biggest in years.
The Chinese optical transceivers firm has started to gauge interest from investors, and details such as size and timing may change while deliberations are ongoing, Bloomberg reported , citing people familiar with the matter.
The deal size will exceed Luxshare Precision's $3.1 billion IPO earlier this month, making it the largest listing in Hong Kong this year.
Innolight didn't immediately respond to a request for comment.
Hong Kong is seeing a wave of listings from Chinese companies that are involved in the artificial intelligence supply chain.
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