Zhongji Innolight will conduct an IPO from July 22 to July 27, planning to globally issue 54.5 million shares and introduce cornerstone investors such as Alibaba, Tencent, and Chow Tai Fook Enterprises

According to the Zhitong Finance APP, Zhongji Innolight (03308) will conduct an initial public offering from July 22 to July 27, 2026, with plans to globally issue 54.5 million H shares (subject to the exercise of the over-allotment option). Of this, approximately 10% will be offered in Hong Kong (subject to reallocation), and approximately 90% will be offered internationally (subject to reallocation and the exercise of the over-allotment option), with an additional 15% over-allotment option. The maximum offer price per share is HKD 1,010, with a minimum purchase of 50 shares. The H shares are expected to start trading on the Stock Exchange at 9:00 AM on July 30, 2026 (Thursday).

The company is a global leader in optical interconnection solutions. Its optical interconnection solutions transmit data via optical fibers, enabling high-speed, energy-efficient, and low-latency connections between servers, switches, and other network devices in increasingly complex and data-intensive cloud and AI infrastructures. The company's main products are optical modules that transmit massive amounts of data by converting electrical signals into optical signals.

During the performance record period, the company's clients include cloud service providers and AI computing solution providers. For the years 2023, 2024, 2025, and the three months ending March 31, 2026, the total revenue from the top five clients for each year/period was RMB 8.039 billion, RMB 18.41 billion, RMB 29.056 billion, and RMB 15.957 billion, accounting for 75.0%, 77.2%, 76.0%, and 81.9% of the company's revenue, respectively. The revenue from the largest client during the performance record period was RMB 3.891 billion, RMB 5.444 billion, RMB 9.202 billion, and RMB 4.889 billion, accounting for 36.3%, 22.8%, 24.1%, and 25.1% of the company's revenue, respectively.

The company has entered into cornerstone investment agreements with Temasek (Taibai, True Light), HHLRA, JP Morgan Asset Management (JPMIMI, JPMAMAPL), BlackRock, YF Capital, Aspex, ADIA, Wellington, Perseverance Asset Management, Indus Fund, Mirae Asset (Mirae Asset Global Investments (Hong Kong), MAS KR, Mirae Asset Securities (Hong Kong)), NGS Super Fund, Bain Capital, CPE, Boyu Capital, IDG Capital, Ninety One Asia, WT Asset Management, Singularity Asset, Tairen, Hao Fund, Janchor Fund, Alibaba, Tencent, CPP Investments, Oaktree, CP Black Dragon, Chow Tai Fook Enterprises, Athos Capital, TAL Fund, Burkehill, General Atlantic, and Huadeng Technology, under which the cornerstone investors have agreed to subscribe or cause their designated entities to subscribe for the number of offered shares available at the offer price (adjusted down to the nearest complete trading unit of 50 H shares), totaling approximately USD 3.45 billionAssuming the over-allotment option is not exercised and the offer price is HKD 1,010.00 per share (i.e., the maximum offer price), after deducting the underwriting commissions, fees, and estimated expenses payable in connection with the global offering, we will receive a net amount of approximately HKD 54.5129 billion from the global offering. According to our strategy, we intend to use the net proceeds for the following purposes, which may be adjusted depending on our evolving business needs and changing market conditions: approximately 35.0% will be allocated to ongoing investment in the research and development of optical interconnect products over the next five years. Approximately 30.0% will be allocated to expanding our global production capacity to support our product upgrade roadmap, which is expected to provide additional annual production capacity of up to approximately 50 million optical modules within the next three years. Approximately 10.0% will be allocated to enhancing our supply chain resilience and commercialization capabilities over the next five years. Approximately 15.0% will be allocated to strategic acquisitions and investments. Approximately 10.0% will be allocated for working capital and general corporate purposes, including making advance payments to obtain key materials and components from suppliers