Shanghai Xizhi Technology saw its shares rocket more than 380 percent above the issue price during its first day of trading on the Hong Kong Stock Exchange on Tuesday, underscoring strong investor confidence in its optoelectronic computing and global growth prospects.
The company closed at 886 HK dollars (113 U.S. dollars), up more than 380 percent from its initial public offering price of 183.2 HK dollars.
Xizhi Technology, founded in 2017, is the world's first company to achieve large-scale deployment of optoelectronic computing power. Its core business focuses on optical computing and interconnect solutions. For two consecutive years, Xizhi's optical computing chips have ranked first globally in shipment volume. Last year, company revenues exceeded 100 million yuan (14.62 million U.S. dollars), with over 70 percent coming from optical interconnect products.
"Optical interconnect will be our main cash cow and profit engine for the next year or two, while its large volume gives us a strong position in the supply chain," said Shen Yichen, founder and CEO of Xizhi Technology.
Optical computing, according to Shen, is a high-barrier and high-potential business. Xizhi plans to launch large-scale optical computing chips for model inference over the next two years to drastically reduce token costs.
Xizhi's IPO attracted more than 20 cornerstone investors, including Alibaba, Temasek, Hillhouse, and BlackRock, with subscriptions totaling 1.644 billion HK dollars, highlighting broad recognition of the company's technological edge and commercialization potential.
Looking ahead, Xizhi Technology plans to invest 70 percent of its net IPO proceeds in R and D for optical interconnect and computing products, further strengthening its lead in the global silicon photonics industry.
Shanghai Xizhi Tech surges over 380 pct on Hong Kong IPO debut
