Key facts
- Transsion Holdings is seeking to raise HK$3.36 billion (US$428 million) through its Hong Kong share offering.
- The company's bookbuilding closed on October 12.
- Preliminary figures show the offering attracted about 14,000 applications and was oversubscribed roughly 3.5 times.
- Cornerstone investors have committed to buying shares worth about HK$1.25 billion.
- Proceeds are earmarked for AI-related technology research, marketing, mobile internet services, and IoT products.
Shenzhen Transsion Holdings' Hong Kong share offering has drawn a lukewarm response, with preliminary figures indicating it was oversubscribed roughly 3.5 times. The company, known for its Tecno, Infinix, and itel phone brands sold in Africa, aimed to raise HK$3.36 billion (US$428 million) through the sale of 86.65 million H shares.
The bookbuilding for the offering closed on Monday, October 12, with about 14,000 applications received. This subdued interest heightens concerns about the market sentiment for new listings in Hong Kong during the fourth quarter.
Cornerstone investors, including Singapore's GIC, E Fund, BYD's Golden Link, Longsys Investment, and BOC Wealth, have committed to purchasing shares worth approximately HK$1.25 billion. These investors agree to hold the shares for at least six months in return for guaranteed allocations.
The funds raised are intended for AI-related technology research, marketing and brand-building, mobile internet services, and Internet of Things products. Transsion's shares have traded in Shanghai since 2019, but have fallen nearly 20% this year.