Victory Giant is widely expected to price its Hong Kong share offering at the top end of its marketed range - HK$209.88 per share - a move that would generate HK$17.5 billion ($2.2 billion) in proceeds, two people familiar with the matter said.
Those sources, who declined to be identified because the information has not been publicly released, said the printed circuit board manufacturer - which supplies components for artificial intelligence servers and a range of other electronics - is also likely to take up an option to increase the size of the offering by up to 15%. If exercised, that upsize would lift total proceeds to about HK$20.2 billion, one source added.
The company did not immediately respond to a request for comment on Wednesday. According to its prospectus, the final pricing is expected on Friday.
If the deal is priced at the top of the range, it would underscore robust investor demand for sizeable Chinese technology listings even as broader market volatility has been driven by the conflict in the Middle East. Market-data referenced in the offering notes show that the transaction would be the largest equity offering since the Iran war began in late February and the largest Hong Kong listing since Zijin Gold's roughly $3.5 billion deal in September, per Dealogic.
On Wednesday, Huaqin Technology initiated a Hong Kong share sale seeking to raise up to HK$4.55 billion, extending a run of substantial Chinese equity transactions in the city.
Victory Giant, already listed in Shenzhen and with a reported market value of $39.6 billion based on LSEG data, launched the Hong Kong offering on Monday. Its prospectus shows a plan to sell 83.35 million shares at up to HK$209.88 each.
The company is scheduled to begin trading on April 21. The prospectus also notes the exchange rate used in disclosures: $1 = 7.8357 Hong Kong dollars.
Key points
- Expected pricing at HK$209.88 per share would raise HK$17.5 billion, with a potential upsize to about HK$20.2 billion.
- The deal would be the largest equity offering since the Iran war began in late February and Hong Kong's largest listing since Zijin Gold's roughly $3.5 billion placement in September.
- The offering highlights continued investor appetite for large Chinese technology-related listings despite market volatility tied to the conflict in the Middle East.
Risks and uncertainties
- The final pricing remains subject to confirmation later in the week as set out in the prospectus.
- The company has not publicly commented on the expected pricing and upsize, and the two informed sources remained anonymous.
- Broader market volatility tied to the conflict in the Middle East could affect investor sentiment and final deal execution.