This weekly newsletter pulls together summaries of the top ten most-read Insights across Equity Capital Markets on Smartkarma.
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1. Aequitas: Innolight A/H Listing – Updated Peer Comp and Thoughts on Valuations
- Zhongji Innolight (300308 CH) one of the world’s largest optical transceiver manufacturers, now aims to raise around US$7bn in its H-share listing.
- Innolight was the global leader in 2025 in optical modules, with its products being in high demand for data centers.
- In our previous notes, we have looked at the company’s past performance and recent filings updates. In this note, we talk about the likely A/H premium/discount.
2. [Japan Offering] ARCHION (543A) Prices Today (?) – Big Picture Growth Priced Cheaply
- The mega-offering-slash-re-IPO of Archion (543A JP) likely prices today. This is 900mm new shares for ~US$1.6bn of which 40% (US$630mm) goes to internationals, 60% to domestics.
- There’s a bunch of index buying to do between now and end-October. More than I originally thought due to one recent data point.
- The stock has NOT gotten crushed in the last two weeks despite indications the sellers wouldn’t mind. That tells me this is priced except for print risk.
3. Aequitas: Innolight A/H Listing – Decent Pricing, Strong Cornerstone
- Zhongji Innolight (300308 CH) (ZI), one of the world’s largest optical transceiver manufacturers, aims to raise around US$7bn in its H-share listing.
- Innolight was the global leader in 2025 in optical modules, with its products being in high demand for data centers.
- We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the IPO pricing.
4. Innolight H Share Listing: The Investment Case
- Zhongji Innolight (300308 CH) is a leading global provider of optical interconnect solutions. It is seeking to raise US$7 to US$8 billion.
- The principal products, optical transceivers, are compact devices that convert electrical signals into optical signals, and vice versa, to enable high-speed, energy-efficient and low-latency data transmission.
- The investment case is based on strong market position, AI infrastructure-fuelled revenue growth, margin expansion, cash generation and a strong balance sheet.
5. Zhongji Innolight (中际旭创) A+H IPO: Analysis of Deal Terms
- Zhongji Innolight, a global supplier of optical transceivers, launched its IPO to raise USD 7,021m through an A+H listing. GS, CICC, MS, and GF are the deal sponsors.
- In this note, we look at the deal terms and provide our thoughts on valuation for the company.
- We analyze reference A+H transactions, cornerstone and sponsor performance and assess the risk-reward of the deal.
6. Archion (543A JP): The Current Playbook
- Since the announcement of the US$1.7 billion secondary offering, Archion (543A JP)’s shares have declined 5.8% to the undisturbed price of JPY313 (3 July).
- It is instructive to look at recent large Japanese placements to understand the potential trading pattern. Archion’s share decline is lower than the median of recent large placements.
- The preliminary pricing range is JPY250 to JPY300 per share. The offering will likely be priced on 22 July. The average large Japanese placement tends to generate positive returns.
7. Innolight H Share Listing (3308 HK): Valuation Insights
- Zhongji InnoLight (3308 HK), a leading global provider of optical interconnect solutions, has launched an H Share listing to raise US$7.0 billion.
- I discussed the H Share listing in Innolight H Share Listing: The Investment Case.
- The proposed AH discount of 23.3% (based on the close on 21 July A Share price) is attractive, and I would participate in the H Share listing.
8. Aequitas: A/H Premiums and Recent 48 Deals Performance – Better Performance, a Look at Correlations
- With over 48 A/H listings since the start of 2025, we look back at some of the trends from the recent listings.
- In this note, we will also talk about the overall performance of the cohort of 48 deals. Overall, A/H listings since 2025 have reversed the trend of past A/H listings.
- We also have a look at some of the factors that might impact the post deal performance.
9. Zhongji InnoLight (3308 HK) IPO: Assessing the Valuation
- The IPO of Zhongji InnoLight (3308 HK), a leading global provider of optical interconnect solutions, which seeks HK$54.5bn, is the largest since 2019.
- Its FY25-28F EPS CAGR will reach 89.8%, underpinned by the jump in revenue and expansion in margin. Its 1Q26 net profit has already surged by 262.3%.
- The IPO is priced at a 17.7% HA discount. At a HK$1.2trn market capitalisation, pegging it to its A-share will give a price of HK$1,227, or a 21.5% upside.
10. Pre-IPO Zhongji InnoLight (PHIP Updates) – Some Points Worth the Attention
- ZHONGJI adopts a “sales-driven” approach. The core is to respond quickly to customer orders rather than stockpiling goods for sale.Supply chain is efficient during prosperous periods but vulnerable during disruptions.
- The uncertainty of the technical route and the development progress of the 3.2T optical transceivers are both turning points. The outcome of the technological competition is far from being settled.
- The recent sharp fluctuations in A-shares may affect the pricing benchmark for H-shares. In our view, a comfortable valuation range could be P/E of 25-35x, based on 2026 forecast.
