Chinese optical transceiver maker Zhongji Innolight, known for products used in data centers, is expected to price its Hong Kong initial public offering at HK$980 (US$120) a share, according to people familiar with the matter.

That would be below the marketed cap of HK$1,010 (US$130) and represent a 19% discount to Innolight’s 1,046.51 yuan (US$150) closing price in Shenzhen on July 24.

With the overallotment option, the deal could reach about US$7.8 billion, making it Hong Kong’s biggest IPO since Alibaba Group Holding’s 2019 listing.

People familiar with the matter said institutional demand had covered the deal early, and Innolight stopped taking institutional orders on July 24, a day earlier than expected.

The company said it plans to use the proceeds for research and development, expanding production capacity, strengthening its supply chain, acquisitions, investments, and working capital.

🔗 Source: Bloomberg