Zhongji Innolight is preparing to price its highly anticipated Hong Kong initial public offering below the top end of its indicative range, according to Bloomberg News.
The Shenzhen-based optical component manufacturer, a key supplier to the global AI infrastructure boom, is signaling a more conservative valuation to potential investors as it seeks to ensure a successful debut on the secondary market.
The decision to price below the maximum cap suggests that underwriters are encountering resistance at higher valuations.
This move comes after Innolight shares surged as much as 8% in early Monday trading on the Shenzhen Stock Exchange, following the company's receipt of regulatory approval for the listing, which was initially valued at up to $8 billion.
The primary listing on the Hong Kong Exchange aims to broaden the company's investor base and provide a liquidity hub for international capital.
The cautious pricing strategy reflects broader headwinds facing Chinese technology IPOs in Hong Kong.