Huaqin’s US$580 million Hong Kong share sale attracts JPMorgan and UBS
The Shanghai-listed firm is selling 58.55 million shares, pricing them at a 31.2 per cent discount to their last-traded mainland stock price
Shanghai-listed Huaqin, one of the world’s largest consumer electronics original design manufacturers (ODMs), kicked off a Hong Kong share sale on Wednesday, aiming to raise up to HK$4.55 billion (US$580 million).
The electronics giant – the latest mainland-listed firm to tap Hong Kong’s stock market with Beijing’s backing – is offering 58.55 million shares, with 10 per cent earmarked for retail investors and the rest for international placement.
The maximum offer price of HK$77.70 per share represents a discount of 31.2 per cent to its A-share closing price of 98.30 yuan on Tuesday. Nvidia supplier Victory Giant Technology, which started book-building on Monday, offered a discount of nearly 60 per cent to its mainland-traded shares. Victory Giant is also a cornerstone investor.
Huaqin is a leading full-stack intelligent product ODM – a company that designs and makes products that other brands sell under their own names. It held a 22.5 per cent global market share in consumer electronics ODMs in 2024 by shipment volume, ranking first worldwide, according to its prospectus, which cited data from China Insights Consultancy.
Huaqin, which currently has a market capitalisation of 101 billion yuan (US$14.8 billion), leads in multiple segments. It was the world’s largest ODM for tablets and smart wearables with a market share of 37.9 per cent and 18.7 per cent respectively, according to China Insights Consultancy. It was also the world’s second-largest smartphone ODM with a 25.9 per cent market share.