Chinese optical communications equipment maker Ligent Technologies plans to launch its Hong Kong initial public offering as soon as September 14, aiming to raise around $800 million, two people with knowledge of the matter said.
Ligent, controlled by Chinese technology conglomerate Hisense Group Holding, is targeting a valuation of about 28 billion yuan ($4.2 billion), one of the people said.
The company could list in Hong Kong on September 22, the second person said.
The offering size, valuation and timetable could still change depending on market conditions, the two sources said, declining to be identified because the information was confidential.
Ligent and Hisense did not immediately respond to requests for comment.
Hisense Group Holding and its wholly owned Hong Kong unit held a combined 48.6% stake in Ligent before the offering, according to the company’s post-hearing filing.
Private equity firm Primavera Capital Group is a significant minority shareholder in the company, the filing showed.
Ligent makes optical transceivers, optical chips and network terminals. Its products are used in data centres, cloud computing and telecommunications networks.
The company’s profit rose nearly 30% to 661 million yuan in the six months ended June 30 from 509.5 million yuan a year earlier, the filing showed. Revenue rose close to 28% to 5.39 billion yuan.
Ligent said the revenue growth was mainly driven by higher sales of datacom transceivers, as demand grew for products used in artificial intelligence and cloud computing.
Citigroup and Citic Securities are joint sponsors of Ligent’s offering, its filings showed.
($1 = 6.7179 Chinese yuan renminbi)
Reuters
