Guanghe Technology nearly 50% discount H-shares raise 3.3 billion HKD, up 34% on the first day; A-shares fall 5%

China Economic Net, Beijing, March 20 — Guangzhou Guanghe Technology Co., Ltd. (hereinafter referred to as “Guanghe Technology,” 01989.HK) was listed on the Hong Kong Stock Exchange today. At the close, the stock price was HKD 96.00, up 33.56%.

The final offer price and allotment results announced that Guanghe Technology’s global offering consisted of 46,000,000 H-shares, including 4,600,000 H-shares in Hong Kong and 41,400,000 H-shares internationally.

The joint sponsors, sponsors and overall coordinators, overall coordinators, joint global coordinators, joint bookrunners, and joint lead managers for this issue are CITIC Securities and HSBC. The overall coordinators, joint global coordinators, joint bookrunners, and joint lead managers are GF Securities and Huatai International. The joint global coordinators, joint bookrunners, and joint lead managers also include Guolian Securities International.

Guanghe Technology’s cornerstone investors include Yuanfeng Fund Management Co., Ltd., Yuanfeng Asset Management, Guotai Junan Investment (for Yuanfeng OTC swaps), Shanghai Jinglin, CITIC Securities International Capital Management Co., Ltd. (for CITIC Securities back-to-back total return swaps and CITIC Securities client total return swaps), Jinglin Asset Management Hong Kong Limited, UBS Asset Management (Singapore) Ltd., Value Partners Hong Kong Limited and Value Partners Management Company, Eastspring Investments (Singapore) Limited, Greater Bay Area Development Fund Management Co., Ltd., MY Asian Opportunities Master Fund, L.P., Baring Asset Management (Asia) Limited, Dajia Life Insurance Co., Ltd., ICBC Wealth Management Co., Ltd.

The final offer price for Guanghe Technology was HKD 71.88 per share, with total proceeds of approximately HKD 3,306.48 million. After deducting estimated listing expenses of HKD 121.22 million based on the final offer price, the net proceeds amounted to HKD 3,185.26 million.

According to the prospectus, the company intends to use the net proceeds from the global offering for the following purposes: the second phase of its Thailand base; expansion and upgrade of production facilities at its Guangzhou base; enhancement of R&D capabilities in developing materials technology, improving manufacturing processes, and product development; seeking strategic partners, investments, or acquisitions that complement the company’s business and align with its development strategy; working capital and general corporate purposes.

The prospectus states that Guanghe Technology mainly engages in the research, development, production, and sales of customized printed circuit boards (“PCBs”) used in computing power servers and other computing scenarios.

Guanghe Technology will be listed on the Shenzhen Stock Exchange Main Board on April 2, 2024, with an issuance of 42,300,000 shares, all new shares, with no transfer of existing shares, at an issue price of RMB 17.43 per share. The sponsor (lead underwriter) is Minsheng Securities Co., Ltd. (now Guolian Minsheng Securities Underwriting and Sponsoring Co., Ltd.), with Jiang Tao and Wang Jia as sponsoring representatives.

The total funds raised from the listing are approximately RMB 737.289 million, with net proceeds after deducting issuance expenses of about RMB 653.458 million. The final net proceeds are RMB 264.6467 million less than the original plan. The prospectus disclosed on March 28, 2024, shows that the company plans to raise RMB 918.1052 million for Phase II of the Guanghe Circuit Board Project at Huangshi Guanghe Precision Circuit Co., Ltd., as well as for supplementing working capital and repaying bank loans.

The total listing and issuance expenses amount to RMB 83.8305 million, including RMB 58.034 million in underwriting and sponsorship fees.

Today, Guanghe Technology’s A-shares closed at RMB 110.03, down 4.93%.

According to Sina Finance, based on the pricing discount, the upper limit of Guanghe Technology’s Hong Kong listing price is approximately 47.1% below its A-share closing price of RMB 119.90 on March 11, and nearly 49% below the RMB 124.10 closing price before the issuance was launched. The discount is significant. If the stock price remains stable before pricing, it could become the project with the largest issuance discount in the Hong Kong market since 2026.

(责任编辑：魏京婷)