IT Home On October 7, according to Bloomberg, Shenzhen Transfonte Holdings, which dominates the African smartphone market, is seeking to raise up to HK$3.36 billion (IT Home note: at current exchange rates, this is approximately RMB 2.874 billion) through a Hong Kong stock issuance.
According to the global offering document submitted by Transphone to the Hong Kong Stock Exchange, the Chinese mobile phone manufacturer plans to issue 86.6 million shares at a maximum issue price of HK$38.80 per share (equivalent to approximately RMB 33.2 at the current exchange rate); the stock is expected to begin trading officially on October 15. The A-share shares of Transphone listed on the Shanghai Stock Exchange have fallen by 19% in total since this year.
Keystone investors can receive a placement guarantee, but they need to lock in their positions for at least six months. Assuming the shares are issued at the upper limit price, keystone investors have agreed to subscribe for approximately 37% of the base issue size; if the final price is lower, the proportion of keystone subscriptions will further increase. These keystone investors include Singapore Government Investment Corporation (GIC), E Fund, Millennium Capital, Golden Link Worldwide Ltd., and an investment platform under Shenzhen Jiangbo Long, a memory chip company.
This offering issue will also serve as a test, to gauge investors' willingness to invest in listed companies outside the AI supply chain. The increase in storage chip prices is putting pressure on Telingo’s already stable profit margin. Although the massive capital needs in the AI industry have driven the scale of new share offerings in the Hong Kong market to a new quarterly high, the performance of new share offerings in other sectors has not been ideal. The fast-fashion giant Shein Global Holdings Ltd. previously raised $1.7 billion (equivalent to approximately 11.41 billion RMB at current exchange rates). Since its listing on September 1st, its stock price has dropped by about 30%.
Headquartered in Shenzhen, Tonny Holdings owns mobile phone brands such as Tecno and Infinix. Based on shipment volumes, it holds 53% of the mobile phone market in Africa, which is why it is also known as the “King of Africa”. At the same time, it ranks among the top mobile phone manufacturers in several emerging markets.
The funds raised from the Hong Kong stock market will be used to accelerate research and development in artificial intelligence-related technologies, including AI assistants and intelligent AI agents, while enhancing the product differentiation advantage.
CITIC Securities is the exclusive sponsor for this issuance.