New Stock News | Nuzhen Technology (09856) Subscription Period Ends; Margin Subscription Amount Reaches HK$15.545 Billion, 26.42 Times Oversubscribed

Optical communications and optical connectivity product supplier Nuzhen Technology (09856) opened its subscription period from September 14 to September 17, 2026, and has now closed its public offering. According to market sources, Nuzhen Technology has received HK$15.545 billion in margin financing from brokers. Based on the public offering size of HK$567 million, the subscription was 26.42 times oversubscribed. Nuzhen Technology plans to offer 172 million shares globally (subject to the exercise of the over-allotment option), of which 10% is for the Hong Kong offering (subject to reallocation) and 90% is for the international offering (subject to reallocation), with an additional 15% over-allotment option. The offer price is HK$32.96 per share, with a board lot of 100 shares and an entry fee of HK$3,329.2 per lot. The company is expected to list and commence trading on September 22 (Tuesday), with Citi and CITIC SEC as its joint sponsors. In this IPO, Nuzhen Technology has introduced a total of 24 cornerstone investors, including Primavera Investment Fund, GBAHIL, CFTC Paragon SP, HK BVF I LPF, Orient Asset Management, Mount Altai, Peak View Capital, Sinofortune Nova, Ambre Lau Trade Limited, SCV Delta, Mirae Asset Securities Hong Kong, PAG Capital Structure Opportunity Fund LP, Turquoise Hime (ORIX), GF Fund, E Fund, China Securities Co., Ltd. OTC Swap, Qianhai International Fund Management Co., Ltd., Gaoteng International Asset Management Co., Ltd., GigaDevice Semiconductor Inc., Amlogic Hong Kong, Atlas Venture Limited, Mingshan Capital, ODI Trust, and Barings, with total subscription amounts of US$340 million. Based on the offer price of HK$32.96 per share, the total number of offer shares to be subscribed by the cornerstone investors (including offer shares to be subscribed through Qualified Domestic Institutional Investors) will be 80,876,700 shares. According to the prospectus, Nuzhen Technology is an established optical communications and optical connectivity product supplier dedicated to the research and development, manufacturing, and sales of optical modules, optical chips, and optical network terminals, serving domestic and international customers. In 2025, based on global optical module revenue, the company held a 4.0% market share, ranking fifth among all specialized optical module manufacturers globally; based on China optical module revenue, the company held a 10.1% market share, ranking third among all specialized optical module manufacturers globally. The company is also one of the few companies globally with both optical module and optical chip R&D and production capabilities. The company has 1,581 patents and 716 pending patent applications globally. It is an initiator or member of 18 industry standardization organizations and has participated in the formulation of 61 industry standards. Leveraging its cross-regional R&D network in Qingdao, Wuhan, Silicon Valley, and Singapore, the company has accumulated core technologies and products covering all major segments of the optical communications value chain. In the field of optical module products, the company has proprietary capabilities in circuit design and core packaging technologies, including transistor outline packaging (TO-CAN), BOX, chip-on-board packaging (COB), and silicon photonics packaging technologies. In the field of optical chip design, the company has successfully developed two mature processing platforms for buried heterostructure and ridge waveguide. The company also has proprietary capabilities in developing a variety of optical network terminal products. In terms of financials, for the years 2023, 2024, and 2025, and for the six months ended June 30, 2026, the company achieved revenue of approximately RMB4.239 billion, RMB5.087 billion, RMB8.355 billion, and RMB5.393 billion, respectively; during the same periods, it recorded annual/period profits of approximately RMB216 million, RMB89.49 million, RMB873 million, and RMB661 million, respectively. Nuzhen Technology plans to allocate approximately 52.9% of the net proceeds to continuous investment in the research and development of new products and technologies; approximately 25.1% to expanding the production capacity of optical modules and optical chips, and enhancing the automation level of the entire product line; approximately 4.0% to strengthening business promotion and overseas market expansion; approximately 8.0% is expected to be allocated over the next five years to strategic investments and acquisitions in the optical communications value chain in domestic and overseas markets; and approximately 10.0% is expected to be allocated for working capital and general corporate purposes.