Longsys Aims for $800M Hong Kong IPO at Steep Discount to Shenzhen Price

Shenzhen Longsys Electronics, a Chinese semiconductor firm, is pursuing up to HK$6.28 billion — roughly $800 million — through a Hong Kong stock offering.

The company disclosed the terms in a listing prospectus on Monday. The memory chipmaker is currently listed in Shenzhen. Its proposed Hong Kong offer price is significantly lower than the mainland stock's trading level.

Longsys Offers Shares 45% Below Shenzhen Valuation

Longsys is selling roughly 26 million shares, with a top price of HK$240.60 per share, according to a Bloomberg report. That represents a 45% discount compared to its Friday closing price of 376.88 yuan in Shenzhen. The stock has risen nearly 33% in 2026.

The final offer price is expected to be set on September 4, with allocation results published by September 7. Trading of the company's H shares is slated to start on September 8.

Upsize options could push the total deal value to $1.06 billion. The terms point to a market capitalization of up to $24.9 billion.

The timing works in the company's favor. Earlier this month, Longsys posted a half-year net profit surge of more than 71,000%, driven by rising memory prices. Revenue climbed to 24.1 billion yuan.

Contract prices have increased as data-center operators compete for supply. The resulting AI-related memory shortage has boosted valuations across the industry.

Around 78.3% of the net proceeds are earmarked for research and development. Cornerstone investors — including Lenovo, Transsion International, CITIC Securities Asset Management, and Lens Technology — have committed to purchasing 18.89% of the shares.

Memory Firms Absorb Massive Amounts of Capital

Longsys represents the smaller deal within a broader wave of capital flowing into memory. Last month, CXMT raised 66.6 billion yuan, or about $9.9 billion, in what was China's second-largest listing ever. The stock later overtook Tencent, making CXMT the country's most valuable publicly traded company.

Other firms have opted to issue new shares instead. SK Hynix sold 17.79 million new shares as Nasdaq receipts in July, raising roughly $26 billion.

However, investor appetite has its limits. SK Hynix experienced a sharp decline in July, with the KOSPI dropping 22% that month, as market participants questioned the scale of AI capital spending.