Transsion Holdings launches Hong Kong IPO to raise up to 3.36 billion HKD

Transsion Holdings, the parent company of mobile brands Tecno, Infinix, and itel, has commenced its Hong Kong IPO process. The company plans to raise up to 3.36 billion HKD through the issuance of 86.65 million H shares, with an expected listing date of October 15. The offering price is set between 35.3 HKD and 38.8 HKD per share.

Twelve cornerstone investors, including Singapore’s sovereign wealth fund GIC, Millennium, and Bank of China Wealth Management, have committed approximately 1.25 billion HKD to the offering. The IPO price represents a discount of 38% to 44% compared to the company’s recent A-share closing price on the STAR Market.

Transsion, which holds a dominant 61.5% market share in Africa, intends to use 40% of the net proceeds for AI-related research and development. An additional 30% will be allocated to marketing and brand building, 20% to mobile internet and IoT products, and 10% for general working capital. The company reported a significant increase in profit for the first four months of this year, rising 122% year-on-year to 13.61 billion RMB.