Ligent Plans $723 Million Hong Kong IPO
Ligent Plans $723 Million Hong Kong IPO
Anonymous
Key Points
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Ligent’s product portfolio includes optical transceiver modules, optical chips and network terminals used in data centers, cloud-computing infrastructure and telecommunications networks.
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Citigroup and CITIC Securities are serving as the joint sponsors of Ligent’s Hong Kong offering; named cornerstone investors include GigaDevice and Mirae Asset Securities Hong Kong.
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Hisense Group Holdings is expected to retain a 40.1% stake in Ligent after the IPO if the overallotment option is not exercised, down from 48.6% before the offering.
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Revenue from Ligent’s data-center transceivers, its largest business, rose 36.6% year over year to 3.74 billion yuan in the first half, outpacing the company’s overall revenue growth.
China's Ligent Technologies plans to raise HK$5.67 billion (US$723 million) in a Hong Kong IPO, valuing the optical equipment maker at roughly HK$32.4 billion. Reuters reports the company will offer 172 million shares at HK$32.96 each, with trading expected to begin September 22.
Ligent, controlled by Hisense Group Holdings, has already secured US$340 million from cornerstone investors. KSL notes the company plans to use IPO proceeds for research and development, production expansion, and general operations as demand for data-center transceivers surges due to artificial intelligence and cloud computing growth.
Strong Growth in AI-Driven Data Center Equipment
Ligent's data-center transceivers — its largest business — generated 3.74 billion yuan in the first half of this year, a jump of 36.6% year over year. IJR reports this growth outpaced the company's overall revenue increase of 27.9%, driven by explosive demand from cloud-computing providers and artificial intelligence infrastructure expansion.
The company's net profit surged 29.7% in the first half, showing healthy margins alongside rapid revenue growth. Ligent makes optical transceiver modules, optical chips, and network terminals used across data centers and telecommunications networks globally.
Underwriter Support and Cornerstone Investors Lined Up
Citigroup and CITIC Securities are co-sponsoring the Hong Kong offering. Reuters identifies cornerstone investors including GigaDevice and Mirae Asset Securities Hong Kong, who have committed substantial capital to anchor demand at the IPO price.
Underwriters hold the right to sell an additional 25.8 million shares through an overallotment option. If exercised, this would raise the total capital raised and further dilute Hisense Group's controlling stake in the company.
Hisense Retains Majority Control Post-IPO
Hisense Group Holdings currently owns 48.6% of Ligent. China Daily Asia reports the parent company's stake will drop to 40.1% after the IPO if the overallotment option is not exercised, preserving its position as majority owner and controller of the optical equipment maker.
This ownership structure allows Hisense to benefit from Ligent's growth while accessing public capital markets. The move reflects growing investor appetite for Chinese semiconductor and telecom equipment suppliers riding the AI investment wave.
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