BRIEF: Epiworld jumps in Hong Kong trading debut

Silicon carbide epitaxial wafer supplier Epiworld International Co. Ltd. (2726.HK) opened 52.2% higher in its Hong Kong trading debut on Monday, before trimming the gains to trade at HK$102.60 by the midday break, up 34.54% from its IPO price.

The company said it issued 21.49 million shares at HK$76.26 each, raising net proceeds of about HK$1.56 billion ($226 million). The Hong Kong public offering for local investors was oversubscribed by about 50 times, while the international tranche was 1.95 times oversubscribed.

Founded in 2011, Epiworld develops and sells third-generation semiconductor silicon carbide epitaxial wafers. Its products are used in silicon carbide power devices, with applications in new energy vehicles (NEVs), photovoltaic power generation, rail transit, smart grids and aerospace.

The company’s revenue fell 33.8% year-on-year to 535 million yuan in the first three quarters of 2025, while its profit plunged 82% to 21.14 million yuan from 120 million yuan a year earlier. Its gross margin has steadily declined as the industry rapidly adds new capacity, dropping from 44.7% in 2022 to 25.6% in the first three quarters of 2025.

The company plans to use about 71% of the IPO proceeds to expand its silicon carbide epitaxial wafer capacity. Another 19% will be used for product development, and the final 10% will be used for working capital.

By Lee Shih Ta

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