Guanghe Technology (01989.HK) commences public offering today, raising HK$3.175 billion to expand production capacity

ZC Asia has learnt that Guanghe Technology (001389.SZ), a leading A-share listed PCB (printed circuit board) manufacturer, commenced its Hong Kong IPO on 12 March under stock code 01989.HK. The company is scheduled to list on the Main Board of the Hong Kong Stock Exchange on 20 March. This dual-listing strategy coincides with a period of rapid earnings growth, with the company's latest fiscal year net profit surpassing the RMB1 billion threshold.

Under the offering arrangements, Guanghe Technology plans to globally issue 46 million H-shares. The Hong Kong public offering constitutes 10% (4.6 million shares), while the international offering accounts for 90% (41.4 million shares). The maximum issue price is set at HK$71.88 per share. Based on a trading lot size of 100 shares, the entry cost for investors is approximately HK$7,260.49. The subscription period runs from 12th to 17th March, with the final issue price expected to be announced on or before 19th March.

The IPO is projected to raise net proceeds of approximately HK$3.175 billion. Regarding capital allocation, capacity expansion constitutes the primary use of proceeds. Approximately 52.1% of funds will be directed towards expanding and upgrading production facilities at the Guangzhou base, with a focus on enhancing HDI PCB production capacity. A further 19.7% will be invested in the second phase of the Thailand base construction. The remaining funds are earmarked for enhancing R&D capabilities (approximately 10%), pursuing strategic acquisitions (approximately 8.2%), and supplementing working capital (approximately 10%).

Notably, this offering attracted a formidable roster of cornerstone investors. Guanghe Technology secured 12 cornerstone investors, with total subscriptions reaching US$190 million. Participating institutions include China Life Insurance, UBS Asset Management (UBS AM Singapore), Baring, Value Partners, Shanghai Jinglin, and ICBC Wealth Management. The involvement of these renowned long-term institutions and asset managers reflects international capital's recognition of the company's fundamentals and the sector's prospects.

Public records indicate Guanghe Technology specialises in customised printed circuit boards for computing servers and other computational scenarios. Financial data reveals steady performance growth in recent years. For the years ended 31 December 2023, 2024 and 2025, the company's net profits stood at RMB415 million, RMB676 million and RMB1.016 billion respectively. Notably, the 2025 net profit represents a 50.24% year-on-year increase, maintaining rapid growth for three consecutive years.

With the formal commencement of its H-share IPO, Guanghe Technology stands on the brink of listing on the Hong Kong stock market. Subject to smooth progress, the company will commence trading on the Hong Kong Stock Exchange next week (20th March), becoming yet another PCB manufacturer with dual primary listings on both the A-share and H-share markets.

Disclaimer: The content herein is for reference only and does not constitute any form of investment advice. Should any information contained herein prove inaccurate, incomplete, or potentially misleading, please refer to the company's official announcements. Market risks exist; investment requires caution.