Key facts
- Zhongji Innolight raised $6.81 billion in its Hong Kong listing, becoming Asia's second-largest IPO this year.
- The deal trails only Chinese chipmaker CXMT Corp's $8.6 billion Shanghai IPO.
- Zhongji Innolight manufactures optical transceivers for data centers and AI systems.
- The company's first-quarter net profit nearly quadrupled year-on-year.
- Zhongji Innolight was placed on a U.S. Department of Defense list of 'Chinese military companies'.
Chinese optical parts maker Zhongji Innolight has priced its Hong Kong listing at HK$980 per share, raising HK$53.41 billion ($6.81 billion) and securing its position as Asia's second-largest IPO this year. The deal trails only Chinese chipmaker CXMT Corp's $8.6 billion Shanghai IPO, which saw its shares surge as much as 530% on debut, valuing it at approximately $489 billion and making it China's most valuable listed company.
Zhongji Innolight manufactures optical transceivers, crucial components for high-speed data transmission in data centers, cloud computing, and AI systems. The company's successful listing occurs amidst China's strategic push to develop domestic AI champions, particularly as U.S.-led export controls restrict access to advanced semiconductors. This fundraising wave by Chinese technology firms is occurring in Hong Kong's buoyant equity market, despite recent volatility in global chip stocks.
The company reported a near quadrupling of its first-quarter net profit to 6.32 billion yuan ($934.12 million) and a near tripling of revenue to 19.5 billion yuan ($2.88 billion) year-on-year, driven by strong demand from major customers investing in AI infrastructure. Notably, 61.7% of Zhongji Innolight's revenue in the first quarter of 2026 came from the U.S.
Zhongji Innolight has stated that its inclusion on a U.S. Department of Defense list of "Chinese military companies" in June does not, by itself, restrict its business with U.S. customers or trading in its securities.