Dongshan Precision (02384) October 20-October 23 IPO introduces Alibaba Investment and other cornerstone investors

According to the Zhitong Finance App, Dongshan Precision (02384) will raise shares from October 20, 2026 to October 23, 2026. It plans to sell 114 million H shares globally. The Hong Kong public sale accounts for about 10%, and the international sale accounts for about 90%. The offering price is not higher than HK$93.80 per share, with 100 shares per lot. It is expected that H shares will start trading on the Stock Exchange at 9:00 a.m. on October 28, 2026.

The company is a manufacturer that mainly focuses on printed circuit boards (PCBs), precision components, touch panels and liquid crystal display modules (LCM), and optical modules, and has a global business and operating footprint. The company's products are widely used in consumer electronics, automobiles, data centers, communication equipment and industrial control equipment, and ultimately realize interconnection between people, equipment and infrastructure. In September 2025, the company entered the optical module business through the acquisition of Solstice Optoelectronics, thereby expanding the company's product portfolio to include optical modules.

According to Insight Consulting, in terms of revenue in 2025, the company is the third largest PCB supplier in the US$85.2 billion global PCB market; according to Solus Optoelectronics's revenue in 2025, the company ranked 7th in the US$24.5 billion global optical module market, with a market share of 2.9%. The company's PCBs, precision components, touch panels and liquid crystal display module products serve the consumer electronics, automotive and communication terminal markets. At the same time, the company's optical modules and AI PCB products for the data center terminal market are the company's core growth engine, and demand is driven by the acceleration of AI-related infrastructure construction around the world.

For 2023, 2024, 2025 and the six months ended June 30, 2026, the company's revenue was RMB 33.651 billion, RMB 36.770 billion, RMB 40.125 billion and RMB 27.798 billion, respectively. For 2023, 2024, 2025 and the six months ended June 30, 2026, the company's profits for the year/period were RMB1,965 billion, RMB1,085 billion, RMB1,393 billion and RMB2,985 billion, respectively.

The company has established a cornerstone with Aurora SF, Yonglian Investment, Morgan Asset Management (Asia Pacific) Limited, Alibaba Investment, CPE Bodhi, LMR, Ruiyuan Fund, Montage HK, Oriental Asset Management, Spring River Greater China Fund, Jianjie, Crystal Integrated Hong Kong, Insurance, Rapid Innovation, Tianhong Fund, Xinhua Asset Management, Ghisallo, Jump Trading, Yicun Capital and Mr. Luo Zhongli In the investment agreement, the cornerstone investors have agreed to subscribe or induce their designated entities to subscribe for the relevant number of shares at the offer price, subject to certain conditions, and the total subscription amount of such shares is approximately US$680 million.

Assuming a maximum sale price of HK$93.80 per H share, the company estimates that the net proceeds from the global sale will be approximately HK$10.516.9 billion. In line with the company's strategy, the company plans to allocate the net proceeds for the following purposes and according to the following amounts: about 64.5% is expected to be used to build new facilities and upgrade the company's existing production facilities and production lines; about 20.0% are expected to be used for potential strategic investments or acquisitions to strengthen the technological leadership and market leadership position of the company's core business; about 5.5% is expected to be used to repay part of the existing debt; and about 10.0% is expected to be used for working capital and general corporate purposes.