The Shenzhen-listed optical module maker’s target climbed from an initial confidential filing, driven by strong investor demand during roadshows
Zhongji Innolight moves closer to US$7 billion Hong Kong listing
Article by:
PUBLISHED:
Shenzhen-based Zhongji Innolight took a step toward a Hong Kong share sale on Friday, publishing its post-hearing draft prospectus as it works toward what could become the city’s largest listing of the year.
The company makes optical modules used in AI data centres, key components in Nvidia’s networking and computer ecosystem. Its Shenzhen-listed shares have surged more than 60 percent this year.
Zhongji Innolight filed confidentially for the Hong Kong listing back in April, with a fundraising target well below its current level. That target climbed to US$7 billion after strong demand from institutional investors during roadshows, according to people familiar with the matter.
[See more: Hong Kong’s assets under management reach a record high]
China’s securities regulator was reported to be nearing approval for the listing in mid-July, clearing the way for Friday’s filing. At US$7 billion, the deal would eclipse Luxshare Precision’s US$3.1 billion share sale earlier this month to become Hong Kong’s biggest listing so far this year.
A source with direct knowledge of the deal said bookbuilding could begin as early as next week, with a market debut targeted for the first week of August, though the timeline could shift depending on conditions. Zhongji Innolight did not respond to a request for comment.
[See more: Southbound Bond Connect quota increased to boost GBA ties]
The filing lands amid a rough stretch for AI-related stocks. A broad chip sell-off hit global markets on Friday, while Chinese equities slid after memory chipmaker CXMT unveiled plans for an US$8.6 billion IPO of its own, stoking concern that large new listings could pull liquidity away from the wider market.
Even so, Hong Kong’s listing market is having a record year, with companies raising US$33.8 billion through new listings so far in 2026, more than double the same period last year.
Zhongji Innolight: Growth and US exposure
Zhongji Innolight has described itself as the world’s largest optical interconnect solutions provider by revenue for five consecutive years since 2021.
First quarter revenue rose 192 percent to 19.5 billion yuan (US$2.9 billion), while profit jumped 274 percent to 6.32 billion yuan (US$0.94 billion). For all of 2025, profit rose 116 percent to 11.58 billion yuan (US$1.72 billion) on revenue of 38.24 billion yuan (US$5.69 billion). The company said it plans to use listing proceeds for research and development, global production expansion, supply chain investment and potential acquisitions.
US exposure features prominently in the filing. The United States accounted for 61.7 percent of Zhongji Innolight’s revenue in the first quarter, up from 57.3 percent across all of 2025.
The company disclosed that the US Department of Defense added it to a list of Chinese military companies on 8 June, though it stressed the listing is not an economic sanctions designation and has not triggered any order cancellations or delays from customers so far. Zhongji said its products are built for commercial use, not military applications.
The listing is led by Goldman Sachs, CICC and Morgan Stanley, among a wider group of underwriters.
UPDATED: 20 Jul 2026, 3:06 pm
