Ligent Technologies Seeks $727 Million in Hong Kong IPO

AI computing networks maker Ligent Technologies Inc. is seeking to raise as much as HK$5.7 billion ($727 million) in a Hong Kong initial public offering, adding to a surge of listings this year tied to the global artificial intelligence buildout.

The Chinese company headquartered in San Jose, California is offering 172 million shares at HK$32.96 apiece, according to a filing to the Hong Kong stock exchange. Trading is expected to begin Sept. 22.

Citigroup Inc. and Citic Securities Co. are joint sponsors on the deal.

Hong Kong IPOs have raised $44 billion this year, according to data compiled by Bloomberg, driven by technology firms tapping equity markets to fund their AI ambitions. With brisk follow‑on offerings, the city is on track for its strongest fundraising since 2021. At the same time, investors have turned more cautious around AI stocks amid concerns over lofty valuations and excessive spending.

Read More: Z.AI’s Cash Burn Drives Alibaba-Like HK Fundraising Spree

Ligent Technologies offers optical‑communication and interconnect solutions, combining optical‑module and chip research and development with large‑scale production.

Cornerstone investors — which get guaranteed allocation in the deal in exchange for holding the stock for at least six months — signed up for about 47% of the base offering. They include Primavera Investment Fund, Greater Bay Area Homeland Investment Ltd. and CFTC Paragon SP, as well as chipmakers GigaDevice Semiconductor Inc. and a unit of Amlogic Shanghai Co.

Proceeds will be used for the research and development of new products and technologies, and expanding production capacity for optical transceivers and optical chips.

Ligent’s local rival Zhongji Innolight Co., which makes optical transceivers essential to the data center buildout, began trading in Hong Kong in July after raising $6.8 billion in the city’s largest listing in seven years. Innolight’s shares have gained 14% since Hong Kong debut.