Chinese chipmaker Longsys eyes US$800mil in HK listing


FILE PHOTO: The logo of Hong Kong Exchanges & Clearing (HKEX) is pictured in its office, in Hong Kong, China, June 10, 2025. REUTERS/Tyrone Siu/File Photo

SHANGHAI: Shenzhen Longsys Electronics Co is seeking to raise as much as HK$6.28bil (US$801mil) in a Hong Kong listing, extending the wave of Chinese companies along the artificial intelligence (AI) supply chain coming to the market after its onshore shares gained about 50% this year.

The Chinese memory-chipmaker is offering about 26 million shares at a maximum price of HK$240.60 apiece, according to the company’s listing document yesterday.

That reflected a discount of 45% to the 376.88 yuan closing price last Friday in Shenzhen.

Longsys expects the shares to start trading on Sept 8.

The size could rise to as much as US$1.06bil with upsize options, according to terms of the deal seen by Bloomberg. The indicated market value is as much as US$24.9bil, according to the terms.  

The offering builds on a wave of Chinese technology firms raising capital for the AI infrastructure buildout.

The trend has been a key driver of Hong Kong’s dealmaking boom this year, highlighted by Zhongji Innolight Co’s US$6.8bil landmark offering last month, the city’s biggest in seven years. 

Among Longsys’ competitors, CXMT Corp last month raised 66.6 billion yuan (US$9.9bil) in China’s second-largest initial public offering (IPO) of all time and became the country’s largest listed company as its shares surged out of the gate.

Yangtze Memory Technologies Co, one of the world’s largest makers of flash memory, is also nearing an IPO.

Longsys plans to use proceeds from the offering to support research and development in chip design and advanced memory technologies.

Its revenue more than doubled to 24.1 billion yuan in the first half of 2026, while net profit jumped more than 700-fold to 10.6 billion yuan as strong demand and constrained wafer supply boosted memory prices.

Cornerstone investors, which get guaranteed allocation in the deal in exchange for holding the stock for at least six months, have agreed to buy 18.89% of Longsys shares.

They include Transsion International Ltd, an indirect unit of Shanghai-listed Transsion Holdings Co, CITIC Securities Asset Management, and Lens Technology HK, the controlling shareholder of Lens Technology Co.

Founded in 1999, Longsys held a 1.2% share of the global memory products market in 2025 and generates about 70% of its revenue from overseas markets, with customers including Dell Technologies Inc, Lenovo Group Ltd, which is also among the cornerstone investors, Samsung Electronics Co, and Xiaomi Corp. — Bloomberg

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