Shenzhen Longsys Electronics Co. has set the offer price for its Hong Kong listing at HK$236 per share, below the maximum indicated level of HK$240.60, according to Bloomberg, citing people familiar with the matter. The HK$236 price equates to about $30.10 per share.
The chosen price represents roughly a 44% discount to Longsys’ most recent closing price on the Shenzhen exchange of 359.63 yuan, which converts to about $53.52. Longsys has been listed on the mainland market since 2022.
The company, controlled by founder Cai Huabo, has seen its mainland-listed shares more than triple over the past year, giving the firm an estimated market value of about $24 billion.
For the Hong Kong placement, Longsys is selling approximately 26 million shares and has granted an option to increase the size of the offering by as much as 15%. The company is expected to begin trading in Hong Kong on Sept. 8.
Longsys is part of a wave of Chinese companies tied to the artificial intelligence supply chain that are marketing listings in Hong Kong. The company has said it will use proceeds from the offering to support research and development in chip design and advanced memory technologies.
Context and market implications
The price set for the Hong Kong tranche sits noticeably below the firm’s Shenzhen trading level, reflecting a material gap between the mainland valuation and the level Longsys chose for its Hong Kong debut. The offering joins a broader trend of AI-linked Chinese firms seeking capital in Hong Kong, a dynamic cited as contributing to increased deal activity in the city this year.
Operationally, Longsys’ stated use of proceeds targets R&D in chip design and advanced memory, aligning the placement with the company’s core technology roadmap rather than with general corporate or balance-sheet items.
What remains subject to near-term change
The final size of the Hong Kong placement could expand if the upsize option is exercised. Market reception when trading begins on Sept. 8 will determine how the Hong Kong-priced shares perform relative to the mainland listing.