Unisplendour on the way to a second Hong Kong listing: Expect a billion-dollar boost

The Chinese IT giant Unisplendour Corp., known for its expertise in cloud computing and IT infrastructure, is planning a secondary listing in Hong Kong. This could bring in around $1 billion as early as this year. The company is joining the ranks of firms listed on mainland exchanges looking to strengthen their presence in the Asian financial hub. Insiders revealed that Unisplendour has already invited banks to participate in this initiative, but under the condition of anonymity, as no public statement on the matter was authorized. On the Shenzhen exchange, where Unisplendour is already listed, the company's shares saw a 45% rise last year, giving it a market capitalization of 70.8 billion yuan (about $9.7 billion). Some companies traded on mainland China benefit from exceptions to Hong Kong Exchange's requirements regarding the minimum number of shares to be issued. The Hong Kong Exchanges & Clearing has also begun consultations on a potential lowering of this threshold. Plans for Unisplendour's stock market move are not yet finalized, and various details such as the size and timing of the offering could still change. Inquiries to Unisplendour have so far elicited no comment. Founded in 1999, Unisplendour primarily offers information technology services, including cloud computing and software development. The portfolio also includes the manufacture of devices such as servers and storage solutions. For the first nine months of 2024, the company reported revenues of approximately 59 billion yuan and net profit of 1.6 billion yuan, with a current price-earnings ratio of about 34—compared to the CSI 300 Index, which is around 15 times. Bankers and lawyers are optimistic about 2025 as a year of increased activity for IPOs in Hong Kong, especially with a strong surge from mainland-traded firms. A prominent name in preparations is the battery manufacturer Contemporary Amperex Technology, or CATL, which is working on an impressive IPO in Hong Kong that could raise at least $5 billion.