【New Stock IPO】Guanghe Technology 1989 IPO Raises Maximum 3.3 Billion, Mainland PCB Leader; Pre-IPO Financing Over 8.6 Billion with Over 25x Oversubscription; Entry Fee 7,261 Yuan, How Much Is the A-Share Water Level

Guanghe Technology (New Listing Number: 01989) Initial Public Offering from March 12 to 17. The company, a manufacturer of printed circuit boards (PCBs) for critical components of computing servers listed on the Shenzhen Stock Exchange, plans to issue 46 million H-shares, with 10% available for public sale in Hong Kong. The maximum offering price is HKD 71.88, aiming to raise up to HKD 3.31 billion. Each lot consists of 100 shares, with an entry fee of HKD 7,260.50. Guanghe Technology’s H-shares will be listed and traded on March 20. CITIC Securities and HSBC are joint sponsors.

As of around 5:30 p.m., according to consolidated brokerage data, Guanghe Technology has received approximately HKD 8.68 billion in margin subscriptions, with HKD 330 million subscribed through public offering, representing an oversubscription of 25.2 times.

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Guanghe Technology A-shares Price Level

Guanghe Technology A-shares (Shenzhen: 001389) closed at RMB 124.1 (approximately HKD 141.42) on Wednesday (11th), with a total market value of RMB 52.83 billion. The latest H-share offering price is a 49.2% discount to the A-share price, equivalent to 96.7% of the A-share level.

Business and Performance

Guanghe Technology mainly engages in the research, development, production, and sales of customized printed circuit boards for computing servers and other computing scenarios. According to Forrester Sullivan, based on the cumulative revenue from 2022 to 2024 for computing server PCBs, it ranks third among global computing server PCB manufacturers and first among mainland China-based manufacturers.

Computing servers undertake core computing tasks, designed for compute-intensive workloads. Their main function is to efficiently process large-scale data, complex algorithms, and compute-heavy operations. PCBs are core components in electronics manufacturing, providing physical mounting platforms for components, with conductive traces and pads enabling mechanical fixation and electrical connections between components.

Guanghe Technology offers PCBs for computing scenarios, industrial scenarios, and consumer scenarios. In the first nine months of last year, revenue was RMB 3.84 billion, up 43.1% year-over-year, with a profit of RMB 720 million, up 47%.

12 Cornerstone Investors Subscribed for USD 190 Million

Guanghe Technology attracted 12 cornerstone investors, subscribing a total of USD 190 million, including CPE, Yuanfeng Asset Management, Guotai Junan Investment (for off-market swaps with Yuanfeng), Shanghai Jinglin, CITIC Securities International Capital Management, Hong Kong Jinglin, UBS Asset Management Singapore, Harvest, Eastspring, GBAHIL, MY Asian, Baring, Taixin Life, and ICBC Wealth Management.

Use of Net Proceeds:

• 19.7%: For Phase II of the Thailand base
• 52.1%: For expansion and upgrade of manufacturing facilities at the Guangzhou base
• 10%: To enhance R&D capabilities in developing materials, improving manufacturing processes, and product development
• 8.2%: To seek strategic partnerships, investments, or acquisitions that complement the business and align with development strategies
• 10%: For operating capital and general corporate purposes

Source: Guanghe Technology Announcement