Xizhi Technology prepares for A-share listing

Optical interconnect and computing company Shanghai Xizhi Technology Co. Ltd. (1879.HK) announced on Monday that its board approved the appointment of Guotai Haitong Securities as the tutoring institution for a proposed second listing on one of China’s domestic A-share markets.

Tutoring is a mandatory preliminary step toward a listing on China’s domestic markets in Shanghai and Shenzhen. A securities firm helps the company strengthen its corporate governance, financial reporting and internal controls, and trains management on listing rules. The process does not constitute approval of a listing application.

Xizhi said it had carefully assessed capital market opportunities following its Hong Kong listing and planned to begin preparations to issue yuan-denominated ordinary shares in Mainland China to support its business development, expand its industry presence and enhance its competitiveness.

Xizhi’s stock debuted in Hong Kong on April 28, with its shares surging 383.62% on their first trading day. By the sixth trading day, the stock had reached HK$1,050, nearly six times its IPO price. But the shares subsequently declined, closing at HK$177 on Monday, below their IPO price of HK$183.20.

Following the new listing plan announcement, Xizhi Technology’s shares opened lower on Tuesday and traded at HK$164.8 by the midday break, down 6.89%.

By Lee Shih Ta

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