Lingyi iTech raises $1.1 billion in Hong Kong IPO priced at maximum

Lingyi iTech, one of Apple’s key precision component suppliers, just pulled off the kind of IPO debut that makes bankers smile. The Shenzhen-listed manufacturer priced its Hong Kong secondary listing at the maximum HK$10.18 per share, raising approximately $1.1 billion in the process.

That’s roughly HK$8.3 billion from 811.8 million shares, with trading set to begin on June 26 on the Hong Kong Stock Exchange under the ticker 1688 HK.

Who’s buying and why

The offering attracted 21 cornerstone investors who collectively committed around $407 million. That’s nearly 40% of the total raise locked in before the general order book even opened.

The company launched its order book around June 17, giving it roughly a week to build demand before pricing on June 24.

Lingyi iTech has been listed on Shenzhen’s A-share market since 2018, where it carries a market capitalization in the range of $14 billion to $18 billion. The Hong Kong listing is a secondary one, designed to tap international capital pools that Shenzhen alone can’t reach.

The AI hardware play

Proceeds from the IPO are earmarked for expanding into AI hardware, humanoid robotics, AI server technologies, smart glasses, foldable devices, and thermal management solutions.

Founded in 2006 by Zeng Fangqin and headquartered in Jiangmen, Guangdong, the company built its reputation on precision electronic components and intelligent manufacturing.

The company recently launched what it calls an Embodied Intelligence Super Factory in Beijing, with a target production capacity of 500,000 units annually. That facility is focused on humanoid robot manufacturing.

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