PCB Maker Dongshan Raises $1.3 Billion in HK IPO, Pricing Shares at 35% Discount to Shenzhen Close
Suzhou Dongshan Precision Manufacturing completed its Hong Kong IPO, raising approximately HK$9.9 billion in the city's largest listing in nearly two months, with shares priced at a significant discount to its A-share value.
Suzhou Dongshan Precision Manufacturing Co. has completed its initial public offering (IPO) on the Hong Kong Stock Exchange, raising approximately HK$9.9 billion (about $1.3 billion). This marks the largest listing in Hong Kong in nearly two months.
According to Bloomberg, the company priced about 113.8 million shares at HK$86.80 each, below the maximum range of HK$93.80. This price represents a discount of about 35% to the Friday closing price of its stock listed on the Shenzhen Stock Exchange. Despite this discount, Dongshan's A-shares have risen 35% this year, although they experienced a nearly 60% slide from a June peak.
As a key supplier of printed circuit boards (PCBs) and components for AI servers, Dongshan's listing serves as a litmus test for investor appetite toward companies involved in the artificial intelligence build-out. Trading is expected to begin on October 28.