June 24 (Reuters) - China's Lingyi iTech priced its Hong Kong initial public offering at HK$10.18 per share, setting the stage to raise about HK$8.3 billion ($1.06 billion), part of which it plans to use for expanding its AI capacity.
The Apple supplier seeks to capitalise on rising demand linked to AI computing and advanced hardware. It wrote in its prospectus that about 37.6% of the IPO proceeds, or roughly HK$3.07 billion, would be marked for enhancing production capacity and upgrading core manufacturing processes.
This includes around HK$1.71 billion to strengthen manufacturing in emerging areas such as high-density AI servers, humanoid robot hardware and AI optical communication infrastructure over the next three years.
Global demand for AI infrastructure has surged as companies ramp up spending on data centres, high-performance computing and next-generation devices.
"I would expect investor interest to be supported by the current enthusiasm around AI supply chains and the improved tone in Hong Kong's IPO market," said Glenn Yin, director of research at brokerage ACCM.
Lingyi is likely to be priced and traded more as an advanced manufacturing and components company than a pure AI play, with investors focused on valuation, earnings and customer concentration, Yin added.
Lingyi said it expects to announce the level of investor demand for its international offering and Hong Kong public tranche, as well as allocation results, on June 25.
Trading of its shares is scheduled to begin on the Hong Kong Stock Exchange at 9:00 a.m. local time on June 26.
Lingyi's Shenzhen-listed shares ended up 10% on Wednesday, marking their highest level since mid-May.
Founded in 2006 by billionaire Zeng Fangqin, the company supplies parts for smartphones, tablets and laptop computers, and counts Apple, Huawei and Samsung as its customers.
Lingyi was among six companies that launched Hong Kong offerings last week. The launches come as global markets stabilise following a U.S.-Iran agreement in the Middle East.
Hong Kong IPOs and second listings have raised $21.5 billion so far this year, more than double the same period in 2025, according to LSEG data to June 11.
(Reporting by Jasmeen Ara Shaikh and Rajasik Mukherjee in Bengaluru; Editing by Joyjeet Das)