Two Chinese Companies Set to Raise over $840 Mln Via Share Offerings

Dow Jones09-14
 
 

Two Chinese companies are seeking to raise a combined US$842.8 million in Hong Kong via share offerings, as mainland Chinese corporates continue to tap robust investor appetite in one of the world's busiest capital markets.

Ligent Technologies aims to raise around 5.67 billion Hong Kong dollars, equivalent to US$723 million, via an initial public offering of 172.0 million shares at HK$32.96 each, it said Monday.

The Qingdao, China-based optical communication and connectivity product provider sells optical tranceivers and chips used in areas such as artificial-intelligence data centers and broadband infrastructure.

It aims to use the net proceeds from the offering to invest in research and development of products and technology, and expand production capacity and automation for its optical tranceivers and chips.

Meanwhile, Shenzhen Forms Syntron Information is raising up to HK$943.4 million through the sale of nearly 59.0 million shares. The Shenzhen-based financial-technology service provider set its maximum offer price at HK$16.00 a share.

The company, which is also listed in Shenzhen, serves the banking industry, offering fintech software development, consulting and system integration services to banks, regulatory authorities and financial institutions in China and Hong Kong.

Forms Syntron aims to use proceeds from the offering to boost its research and development capabilities and delivery capabilities over the next three to five years, as well as strengthen its sales channels in China and overseas.

The offerings are expected to close Thursday, while the shares for both companies are scheduled start trading Sept. 22.

Mainland Chinese companies have headed to Hong Kong's capital markets to raise funds, using the city as a base to reach international investors.

Funds raised through IPOs from January through August totaled HK$342.4 billion, more than double the amount raised in the same period a year earlier, data from Hong Kong Exchanges & Clearing showed.

 
 

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