Two Chinese AI-linked firms seek $1.5 billion in Hong Kong share sales

what happened

Two Chinese technology companies have begun offering shares in Hong Kong to raise a combined $1.5 billion, according to Dow Jones Newswires. Suzhou Dongshan Precision Manufacturing, which makes printed circuit boards for AI devices, expects to raise up to HK$10.67 billion, or roughly $1.4 billion. It is offering 113.8 million H shares at no more than HK$93.80 each, and cornerstone investors have already committed to about half the deal. They include the investment arm of Alibaba Group Holding, JPMorgan Asset Management and Singapore-based fund Aurora SF.

Changzhou Microintelligence, an industrial-robot maker that uses AI, is selling 37.3 million shares for as much as HK$799.9 million, within a range of HK$16.63 to HK$21.46 per share. Trading in both stocks on the Hong Kong Stock Exchange is expected to start on October 28. The offerings come as global equity indexes swing on concerns about AI-linked valuations and a prolonged U.S.-Iran war that has fed inflation fears.

Hong Kong's IPO market remains busy. According to an October KPMG report, 116 listings brought in over HK$388 billion in the first nine months, a record for that span. The city ranks second worldwide behind Nasdaq. Dual listings by mainland Chinese companies accounted for nearly 70% of proceeds, and more than half came from high-tech sectors. KPMG thinks full-year proceeds could near HK$500 billion, above the 2010 annual record of HK$449.5 billion.

why it matters

Strong deal flow in Hong Kong shows investor appetite for new issues, but swings around AI company valuations put pricing under test. How these offerings perform could shape how the market judges the next wave of tech listings in the city.

market impact

Hong Kong IPO market, HKEX: large AI-linked offerings test investor demand amid volatility

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