ZJ INNOLIGHT prices HK IPO at HKD980, below top of range

ZJ INNOLIGHT set its Hong Kong IPO offer price at HKD980 per share, below the HKD1,010 top of the prospectus range.

The company announced the pricing after its subscription period closed at noon yesterday, according to the offer documents. The final price sits about 3 percent below the maximum, leaving room for first-day gains.

The global offering comprises 54.5 million H shares, with a board lot of 50 shares. At the offer price, the deal raises about HK$53.4 billion, or roughly US$6.8 billion. A board lot of 50 shares puts the minimum investment at HK$49,000.

Shares are expected to begin trading on the Hong Kong Main Board this Thursday. The stock was indicated up 9.3 percent in early dealings, testing investor appetite for the optical-components maker.

ZJ INNOLIGHT makes optical components used in data centers and telecom networks, a segment that has drawn investor attention as artificial-intelligence infrastructure spending rises. The company's listing adds to a pipeline of technology deals on the Hong Kong exchange this year, as issuers price offerings to attract institutional buyers.

The pricing at the lower end of the range reflects a measured approach to the listing as Hong Kong's IPO pipeline builds. CICC expects 49 stocks to be added to the Southbound Stock Connect, with 14 potentially removed, a sign of sustained interest in Hong Kong-listed names. The company's short-selling ratio stood at 5.8 percent, with about HK$103.4 million in shares sold short, according to exchange data.

The deal gives ZJ INNOLIGHT a valuation that will be tested when trading begins. First-day trading on Thursday will show whether institutional demand matches the retail subscription. Investors will watch whether the stock holds above the offer price in the session, with the pricing leaving room for gains.

This article is for informational purposes only and does not constitute investment advice.