Xinqi Weizhuang targets HKD3.2B in Hong Kong IPO with 17 backers

Direct-write lithography equipment maker Xinqi Weizhuang (09630.HK) launched its Hong Kong IPO, offering 12.8 million shares at HKD240 to HKD253 each.

The offer comprises 12.84 million H shares, with 10% reserved for Hong Kong retail investors and 90% for international placing. CICC is acting as the sole sponsor. The subscription period runs through June 23, with trading expected to begin June 26 on the Main Board.

The IPO has attracted 17 cornerstone investors, including Hefei SASAC, Hillhouse Capital's HHLRA, VGT (02476.HK), MONTAGE TECH (06809.HK), TONGFU MICROELECTRONICS (002156.SZ) and SUNGROW POWER (300274.SZ). They committed to subscribe for about 6.42 million shares. At the mid-point price of HKD246.41, the cornerstone tranche is worth nearly USD202 million.

Net proceeds are estimated at approximately HKD3.07 billion. The company plans to allocate about 27% for strategic investments and acquisitions, 25% for research and development, 20% for international sales expansion, 18% for production capacity, and 10% for working capital and general corporate purposes.

Xinqi Weizhuang, already listed on Shanghai's STAR Market (688630.SH), makes direct-write lithography equipment used in semiconductor and advanced packaging applications. The Hong Kong listing gives the company access to a broader international investor base. First-day trading on June 26 will test demand for specialized semiconductor capital equipment stocks in the Hong Kong market.

This article is for informational purposes only and does not constitute investment advice.