A 71,000% Profit Surge Is Taking Longsys to Hong Kong Investors
Shenzhen Longsys Electronics, a Chinese semiconductor firm, is in search of up to HK$6.28 billion, or about $800 million, from a Hong Kong share sale.
The firm set out the phrases in a list doc on Monday. The reminiscence chipmaker already trades in Shenzhen. Its Hong Kong provide value sits effectively under the place the mainland inventory trades.
Longsys Sells at a forty five% Discount to Shenzhen
Longsys is providing about 26 million shares at a most value of HK$240.60 per share. That sits 45% under the 376.88 yuan shut in Shenzhen on Friday, Bloomberg reported. The inventory has gained almost 33% in 2026.
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The firm expects to set the ultimate provide value on September 4 and publish the allocation outcomes by September 7. Trading of its H shares is predicted to start on September 8.
Upsize choices might elevate the deal to $1.06 billion. The phrases point out a market worth of up to $24.9 billion.
The timing favors the corporate. Longsys reported half-year web revenue progress above 71,000% earlier this month, a leap constructed on hovering reminiscence costs. Its income surged to 24.1 billion yuan.
Contract costs have climbed as knowledge middle operators compete for provide. The ensuing AI memory shortage has lifted valuations throughout the sector.
About 78.3% of web proceeds will fund analysis and growth. Cornerstone traders have agreed to take 18.89% of the shares. They embrace Lenovo, Transsion International, CITIC Securities Asset Management, and Lens Technology.
Memory Makers Are Absorbing Enormous Capital
Longsys is the smaller deal in a a lot bigger run on reminiscence. CXMT raised 66.6 billion yuan, or about $9.9 billion, final month. That ranked as China’s second-largest itemizing ever, and the inventory handed Tencent to make CXMT the nation’s Most worthy listed firm.
Others have already offered new inventory as a substitute. SK Hynix issued 17.79 million new shares as Nasdaq receipts in July, elevating roughly $26 billion.
The urge for food has limits, although. SK Hynix fell sharply in July, with KOSPI dropping 22% that month, as traders questioned AI capital spending.
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