Investing.com -- Shenzhen Transsion (SS:688036) is seeking to raise as much as HK$3.36 billion ($428 million) through a Hong Kong share sale, giving investors a chance to buy into the Chinese smartphone maker as it faces rising memory costs and weaker margins.
The Shenzhen-based company is offering 86.6 million shares at a maximum price of HK$38.80 each, according to a filing with the Hong Kong Stock Exchange. Trading in the new shares is expected to begin on October 15.
Transsion's Shanghai-listed shares have fallen 19% so far this year, adding to the challenge as the company seeks fresh capital outside the artificial-intelligence supply chain, which has dominated Hong Kong's recent fundraising boom.
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Investors including GIC, E Fund Management, Millennium Capital, Golden Link Worldwide and an investment arm of Shenzhen Longsys Electronics have committed to taking about 37% of the base offering at the maximum offer price.
Those cornerstone investors receive guaranteed allocations in exchange for agreeing to hold the shares for at least six months. Their combined allocation could increase if the final offer price is set below the maximum.
The deal comes as Hong Kong's equity market has enjoyed a surge in fundraising, fueled largely by companies tied to AI and related infrastructure. But demand for other new listings has been more uneven. Shein Global Holdings, which raised $1.7 billion in its Hong Kong debut, has fallen about 30% since its September 1 listing.
Transsion, the maker of Tecno and Infinix smartphones, plans to use the proceeds to accelerate development of AI-related technologies, including AI assistants and agents, while also investing in product differentiation.
The company has a dominant position in Africa, where it accounts for about 53% of the mobile-phone market by unit sales, earning it the nickname "King of Africa." It is also a major handset supplier across other emerging markets. The offering will be sponsored solely by Citic Securities.
Original Article
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