Zhongji Innolight, a Chinese optical transceiver maker, raised HK$53.4 billion ($6.8 billion) in a Hong Kong IPO priced at HK$980 per H share, becoming Hong Kong's largest share sale in nearly seven years. The Shenzhen-listed company sold 54.5 million Hong Kong shares in the deal, which ranks as Asia's second-largest IPO of 2026 after China's CXMT Corp's $8.6 billion Shanghai listing. Shares began trading on July 30.
Innolight manufactures optical transceivers — devices essential for high-speed data transmission over fiber-optic cables used in data centers, cloud networks, and AI systems. The company's first-quarter 2026 net profit nearly quadrupled year-on-year to 6.32 billion yuan ($934 million), while revenue nearly tripled to 19.5 billion yuan, driven by surging demand from major customers investing in AI infrastructure. The U.S. accounted for 61.7% of Innolight's revenue in Q1 2026.
Proceeds will fund R&D, capacity expansion, and supply-chain upgrades as hyperscalers ramp AI infrastructure buildout. The listing's timing reflects China's push to develop domestic AI champions amid U.S. export-control restrictions on advanced semiconductors, and signals investor appetite for companies that profit from the infrastructure race. Innolight faces scrutiny for inclusion on a U.S. Department of Defense list of "Chinese military companies" but says this does not restrict business with U.S. customers or securities trading.