Tuopu CNC (07688) will be listing from May 12th to May 15th, introducing cornerstone investors such as Goldman Sachs Asset Management.

Tuopu CNC (07688) will be listed from May 12 to May 15, 2026. The company plans to globally sell 65.33 million shares, with 10% sold in Hong Kong and 90% sold internationally. The offering price will be HK$26.39 per share, with a minimum trading unit of 100 shares. It is expected that the shares will begin trading on the Hong Kong Stock Exchange on May 20, 2026. The company is a Chinese enterprise focused on the research, design, production, and sales of high-end intelligent manufacturing equipment, mainly five-axis computer numerical control (CNC) machine tools. The company focuses on the research and development of five-axis CNC machine tools to meet the demand for advanced manufacturing in the Chinese aerospace industry. According to Zhoushi Consulting Report, in 2025, the company ranked first in the Chinese aerospace five-axis CNC machine tool market with a market share of 10.0%, ranking fifth among all suppliers of five-axis CNC machine tools in China and second among domestic suppliers with a market share of 3.9%. According to the same source, five-axis CNC machine tools are basic industrial manufacturing equipment, and their cross-industry application is increasingly widespread due to their ultra-high precision, efficiency, and intelligent processing capabilities. The market size of five-axis CNC machine tools is expected to grow from RMB 12.9 billion in 2025 to RMB 31.9 billion in 2030, with a compound annual growth rate of 19.8%. During the historical period, the company has expanded its market into the general industry sector, covering industries such as automotive, energy, medical equipment, shipbuilding, machine tool equipment, and mold manufacturing. The company has entered into cornerstone investment agreements with RBC, 3W, Boyu, HHLRA, UBS AM Singapore, CDH, Xinting Fund, Fuguo Fund, Fuguo Hong Kong, Huaxia Fund, Shanghai Minhang, TT International, Future Assets, and Goldman Sachs Asset Management. The cornerstone investors have agreed to subscribe to a total amount of approximately USD 110 million worth of relevant shares based on the offering price (rounded down to the nearest multiple of 100 H-shares). Based on the offering price of HK$26.39 per share, the total number of shares to be subscribed to by the cornerstone investors will be 32.665 million shares, equivalent to (i) approximately 8.0% of the total issued share capital of the company after the completion of the global offering if 50% of the shares are sold globally and assuming the exercise of the over-allotment option has not taken place, or (ii) approximately 7.8% of the total issued share capital of the company after the completion of the global offering if approximately 43.5% of the shares are sold globally and assuming the exercise of the over-allotment option has taken place. Assuming (i) the offering price is HK$26.39 per H-share (i.e. the offering price) and (ii) the over-allotment option is not exercised, the company estimates that it will receive a net amount of approximately HK$1.606 billion from the global offering (after deducting underwriting fees and expenses). In accordance with the company's strategy, the company plans to allocate the net proceeds from the global offering for the following purposes. Approximately 61.8% will be allocated to research and development advancement. Approximately 10.3% will be allocated for expanding sales and marketing networks. Approximately 12.1% will be allocated for potential acquisitions and investments in key component manufacturers (such as servo drives and direct drive torque motors). Approximately 6.0% will be allocated for partial repayment of the group's interest-bearing bank loans. Approximately 9.9% will be allocated for working capital and general corporate purposes.