Suzhou Dongshan’s US$1.8b Hong Kong IPO trails expectations amid US trade risk concerns
Suzhou Dongshan Precision Manufacturing raised less than expected in its Hong Kong initial public offering (IPO), as investors weighed potential US trade restrictions on its optical modules business amid the city’s cautious appetite for mega listings, analysts said. The company has started taking investor orders for a Hong Kong listing, offering 113.7 million shares at a maximum price of HK$93.80…
Suzhou Dongshan Precision Manufacturing raised less than anticipated in its Hong Kong IPO, facing potential US trade restrictions on its optical modules business. The company offered 113.7 million shares at a maximum price of HK$93.80 per share, with 20 cornerstone investors committing to purchase US$680 million worth of shares.
Despite market expectations of US$2 billion to US$3 billion, the overallotment option could allow the Chinese printed circuit board maker to raise HK$12.3 billion ($1.84 billion). Analysts attribute the shortfall to a cautious market outlook for mega IPOs and concerns over US restrictions on China's 3.2T high-speed optical modules, which are crucial for AI data centers.
The company's Shenzhen shares have dropped 26% this month, reducing its market capitalization to 223 billion yuan ($33.34 billion). Dongshan Precision plans to list its shares in Hong Kong on October 28.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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