Shenzhen Longsys Electronics Co.,Ltd. (301308.SZ), a leading storage module maker, made its official debut on the Hong Kong Stock Exchange main board on September 8, listing under the ticker 09976.HK. The company priced its H-shares at HK$236 each, establishing a dual "A+H" listing structure. The global offering comprised approximately 29.99 million H-shares, with net proceeds of about HK$6.8 billion.
On its first trading day, LONGSYS shares fell below the offer price, last trading at HK$233, down 1.27% from the issuance price of HK$236. The public offering was oversubscribed by 40.32 times, while the international placement attracted subscriptions of 3.88 times.
The company secured 14 cornerstone investors, including industry chain partners such as Transsion Holdings, Lenovo Group, Lens Technology, Ingenic Semiconductor, Colorful Technology, and TCL Technology (via AHGO SPC), alongside domestic and international asset managers like CITIC Capital Hong Kong and Wind Sabre. Together, they subscribed to approximately US$151 million (about HK$1.19 billion) worth of shares, representing 18.89% of the total offering.
A notable point of discussion is the pricing gap. LONGSYS' H-share offer price of HK$236 (approximately RMB 204) represents a roughly 40% discount to its A-share closing price of about RMB 347 on the same day. This discount is significantly wider than the AH premium ratios seen in competitors like Zhongji Innolight, drawing considerable market attention.
Analysts attribute the steep discount to several factors. First, Longsys operates under a "procurement plus packaging plus brand" IDM model, which essentially capitalizes on storage cycle fluctuations rather than possessing the irreplaceable technical barriers and pricing power of companies like Zhongji Innolight. Second, the company reported a net operating cash outflow of RMB 3.15 billion in the first half of 2026, with inventory reaching RMB 25.7 billion, accounting for approximately 60% of total assets, indicating substantial cyclical risk exposure. Third, multiple executives reduced their holdings earlier this year, and the stark contrast between the previous A-share private placement price of RMB 560 per share and the H-share offer price has raised concerns among some investors regarding the pricing rationale.
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