BRIEF: Xizhi Technology rockets in Hong Kong trading debut
Shares of optical connectivity and computing company Shanghai Xizhi Technology Co. Ltd. (1879.HK) skyrocketed more than fivefold in their Hong Kong trading debut on Tuesday, representing one of the best first-day performances on the exchange this year, in an IPO that was heavily oversubscribed.
Xizhi raised HK$2.38 billion ($304 million) by selling 13.8 million shares for HK$183.20 each. The stock opened at HK$888, or nearly five times the offering price, and continued to climb to trade at HK$980.50 in the afternoon. The Hong Kong portion of the IPO for local investors was more than 5,700 oversubscribed, while the international portion was more than 50 times oversubscribed. At the latest stock price, the company has a market cap of about HK$90 billion.
Xizhi’s revenue rose 76% last year to 106 million yuan ($15.5 million) from 60.2 million yuan in 2024, while its loss over that period nearly doubled to 1.34 billion yuan from 735 million yuan. The company plans to use 70% of the IPO proceeds for R&D, with another 20% earmarked for efforts to commercialize its products.
By Doug Young
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