Zhongji Innolight listing is largest Hong Kong IPO since 2019
Optical module leader Zhongji Innolight has debuted on the HKEX main board on 30 July, raising HKD53.41 billion (USD6.81 billion) and becoming the largest Hong Kong IPO to date since Alibaba’s listing in 2019. It achieved the company’s dual listing structure on the Chinese mainland and in Hong Kong.
Davis Polk, Zhong Lun Law Firm, Katten Muchin Rosenman, Hogan Lovells Cadwalader, Clifford Chance and Jingtian & Gongcheng advised on the transaction.
The company issued 54.5 million shares at HKD980 each, attracting 33 cornerstone investors including Temasek, Hillhouse, JP Morgan Asset Management, BlackRock, the Abu Dhabi Investment Authority, Alibaba, Tencent and Chow Tai Fook Enterprises.
Davis Polk acted as Zhongji Innolight’s Hong Kong and US legal counsel, led by global partners He Li, Jason Xu and Li Ran, with counsel Sabrina Ma and Zhao Haiyang participating. Zhong Lun advised on PRC law, with partner Anthony Zhao leading the team. Partners William Jia and John Shen acted as the signing lawyers, while partner Jeffrey Liu counselled on data compliance matters.
Katten Muchin Rosenman advised Zhongji Innolight on US export controls and sanctions. Hogan Lovells Cadwalader counselled on US tariffs and outbound investment planning. Partner Stephanie Sun led the team, which included foreign legal consultant Benjamin Kostrzewa, partners Brian Curran and Mayur Patel, and counsel Ashley Roberts.
Clifford Chance advised the joint sponsors Goldman Sachs, CICC, Morgan Stanley and GF Securities, as well as the underwriters, on Hong Kong and US law. The team was jointly led by partners Fang Liu, Virginia Lee and Janet Fok, with support from partner Jean Thio. Jingtian & Gongcheng acted as PRC legal counsel to the joint sponsors and underwriters.
Headquartered in Shandong province, Zhongji Innolight was founded in 2005 and debuted on the SZSE ChiNext board in 2012. The company is a leading provider of optical interconnection solutions, with a core business focused on high-speed optical modules for AI data centres. Its customers include Nvidia, Google, Meta and Microsoft.
Market researcher China Insights Consultancy said Zhongji Innolight ranked first globally by revenue among optical interconnection solution providers for five consecutive years since 2021.
The prospectus stated that the proceeds would primarily be used for the R&D of optical interconnection products, expanding global production capacity, strengthening supply chain resilience and commercialisation capabilities, strategic acquisitions and investments, and general working capital and corporate purposes.
