HK Stock Market Move | CIG (06166) rose more than 5% in early trading. The company plans to raise nearly HKD 2 billion to be used for strategic reserves of core components.

CIG (06166) rose more than 5% in early trading. As of the time of writing, it had risen by 4.96% to HKD 145.9, with a trading volume of HKD 3.11 billion. On the news front, CIG announced that it plans to sell 15.6 million shares at a price of HKD 126.66 per share. The net proceeds from the sale are expected to be approximately HKD 1.967 billion. The net proceeds from the sale will be used for strategic reserves of the group's core components, supplementation of the group's operating funds, and other general corporate purposes to support the group's sustainable development and accelerate the implementation of the group's global strategy. EB SECURITIES recently released a research report stating that the CIG 800G optical module has been mass shipped to core customers; the 1.6T is expected to be mass produced within 26 years after customer sampling; the company's Malaysia factory expansion has been smooth, and it has successfully passed certification from major customers. In addition, the company is bound to upstream core material suppliers such as optical chips, with improvements in capacity and raw material bottlenecks. Ongoing research and development in cutting-edge optical communication technology is ongoing, and the gap with leading companies is expected to continue to narrow.