InnoLight Technology has passed the hearing for its listing on the Hong Kong Stock Exchange, with CICC, GF Securities, and Goldman Sachs as joint sponsors.

InnoLight Technology has passed the hearing for its listing on the Hong Kong Stock Exchange, with CICC, GF Securities, and Goldman Sachs as joint sponsors.

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On July 17, HKEX documents showed that InnoLight, the world’s leading optical module manufacturer, has completed its listing hearing at the Hong Kong Stock Exchange. The company plans to raise around US$7 billion. If the issuance is successfully completed, this will be the largest IPO in Hong Kong since 2026, and will further enhance the company’s global layout and capacity expansion capabilities.

According to reports citing informed sources, the company originally planned to raise about US$5 billion, but due to strong subscription demand from institutional investors during the roadshow, the target was ultimately raised to about US$7 billion. According to the prospectus, Goldman Sachs, CICC, Morgan Stanley, and GF Securities are acting as joint sponsors for this IPO.

InnoLight was listed on the ChiNext board as an A-share in 2012. As of the close on July 17, the share price was 979.46 yuan, with a total market value of about 1.09 trillion yuan. Since the beginning of this year, the cumulative increase has exceeded 60%. The company stated that the funds raised this time will be mainly used for optical interconnect technology R&D, global capacity expansion, strategic M&A, and to supplement working capital.

Explosive Growth Driven by AI Demand

With AI computing power investment entering a new round of expansion, InnoLight’s performance has also stepped into a stage of high-speed growth.

According to the prospectus, in 2025, the company achieved operating revenue of 38.24 billion yuan, a year-on-year increase of 60.3%; net profit attributable to shareholders was 11.58 billion yuan, a year-on-year increase of 115.6%.

Growth further accelerated in 2026. For the three months ending March 31, 2026, the company achieved operating revenue of 19.496 billion yuan, a year-on-year increase of 192.1%; net profit attributable to shareholders was 5.735 billion yuan, a year-on-year increase of about 262%. The profit in this single quarter has already exceeded that of the entire year of 2024.

Profitability continues to improve. The gross margin in the first quarter increased from 36.1% in the same period last year to 45.5%, reflecting the continued increase in the proportion of high-speed optical module products and further release of scale effects.

Continuous Expansion of Silicon Photonics Product Advantages

According to data from CIC, since 2021 InnoLight has ranked as the world’s largest optical interconnect solutions supplier by revenue for five consecutive years.

In 2025, the company had a 21.2% global market share in optical interconnect solutions; in the high-speed data communication optical interconnect market, the share further increased to 28.1%, continuing to lead the industry.

In terms of technological iteration, the company took the lead in mass producing 400G, 800G, and 1.6T optical modules in 2018, 2020, and 2023, about half a year ahead of main competitors in each case.

Silicon photonics technology is becoming the company’s core competitive advantage. As of the first quarter of 2026, products using silicon photonics technology contributed about 70% of revenue in the high-speed product series. By revenue, the company is also the world’s largest silicon photonics optical module supplier in 2025.

In terms of customer structure, the company mainly serves leading global cloud computing and AI computing platform providers. In the first quarter of 2026, the top five customers accounted for 81.9% of revenue, indicating a high degree of customer concentration.

Expansion of AI Infrastructure Unlocks Long-Term Growth Potential

A key objective of InnoLight's financing in Hong Kong is to lay out plans in advance for the next generation of high-speed optical module upgrades.

According to CIC, the global optical interconnect market size will grow from US$24.8 billion in 2025 to US$111 billion in 2030, with a compound annual growth rate of about 31.6% from 2026 to 2030. The ongoing upgrades of AI data center scale-out and scale-up networks will become the core driving force for the demand growth of high-speed optical interconnects.

According to the prospectus, the company plans to allocate a large proportion of the raised funds to expanding global production capacity to support the delivery of 1.6T and higher-speed products, while promoting R&D and preparations for mass production of 3.2T optical modules.

R&D investment also remains high. In 2025, the company’s R&D expenses reached 1.62 billion yuan, accounting for 61.8% of operating expenses; as of the end of March 2026, the company had 2,292 full-time R&D personnel, providing support for continual innovation in high-speed optical modules and silicon photonics technology.

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