Chinese memory chip manufacturer Longsys is planning a Hong Kong initial public offering to raise up to HK$6.28 billion (US$801 million), joining a wave of artificial intelligence hardware supply chain companies seeking capital in the city. According to listing documents released by the company on Monday, it plans to issue approximately 26 million shares at a maximum offer price of HK$240.60 per share, representing a discount of about 45% to its closing price on Friday for its Shenzhen-listed A-shares.

The company expects its shares to begin trading in Hong Kong on September 8. Its A-shares have already risen approximately 50% so far this year. Deal terms seen by the media indicate that if an over-allotment option is exercised, the fundraising size could reach up to US$1.06 billion, corresponding to a maximum market valuation of approximately US$24.9 billion.

Optical module leader Zhongji Innolight raised US$6.8 billion in its Hong Kong listing last month, marking the city's largest IPO in seven years. Meanwhile, Longsys's competitor, ChangXin Memory Technologies, raised 66.6 billion yuan in its A-share IPO on the mainland in the previous month. Another storage chip company, Yangtze Memory Technologies, is planning to raise 33 billion yuan through a Shanghai listing.

Longsys intends to use the proceeds from the offering to support research and development in chip design and advanced storage technology. Driven by strong demand and rising memory chip prices, the company's first-half revenue more than doubled year-on-year to 24.1 billion yuan, while net profit surged approximately 700-fold to 10.6 billion yuan.