Chinese fibre-optic communications equipment maker Ligent Technologies delivered a robust market debut in Hong Kong, with shares surging as much as 19.2% on Tuesday. According to reports from Reuters, the stock opened at HK$36.60 and climbed to a high of HK$39.30 before paring gains. The stock was last trading at HK$36.20, representing a 9.8% gain from its IPO price of HK$32.96. Ligent Technologies trades under the ticker 9856 on the Hong Kong Stock Exchange.
The company successfully raised HK$5.67 billion ($722.70 million) through its initial public offering, as reported by Reuters. Ligent sold 172.01 million shares in its base offering, giving the company a market capitalisation of about HK$32.4 billion at the offer price. The IPO attracted strong investor demand, with the Hong Kong public offering subscribed 35.16 times and the international offering subscribed 4.67 times, according to a company filing on Monday.
Ligent Technologies' net income for the last half-year at ₹757.55 million HKD, compared to ₹407.68 million HKD in the previous report, representing a 0.00% change. The company's EBITDA stands at ₹1.66 billion HKD with a current EBITDA margin of 10.43%. As per TradingView, the company does not pay dividends to shareholders, though it maintains strong operational performance metrics.
The debut came as broader Hong Kong equities also traded higher, with the Hang Seng Index recently up 0.1% and the Hang Seng Tech Index gaining 1%, as reported by Reuters. The strong first-day performance adds to a series of closely watched new listings in Hong Kong as companies seek to tap investor demand and raise capital in the city's equity market. The stock opened above its offer price and gained further before paring back some gains during the trading session.
According to the company's listing prospectus, Ligent's cornerstone investors include Primavera Investment Fund, GigaDevice, Amlogic Hong Kong, Mirae Asset Securities HK, PAG, ORIX-backed Turquoise Hime, Barings, GF Fund and E Fund. This diverse investor base demonstrates strong institutional and retail confidence in the company's growth prospects in the fibre-optic communications equipment sector.
