Optical-electronic hybrid computing provider Xizhi Technology listed on the HKEX on 28 April, raising HKD2.53 billion (USD323 million) and becoming the world’s first listed AI silicon photonics chip company. Davis Polk, Zhong Lun Law Firm, Haiwen & Partners, Hogan Lovells and Fangda Partners advised on the transaction.
AI silicon photonics chips use light (photons) to perform computation, accelerating matrix operations in AI through optical transmission and interference. This technology is regarded among industry circles as a promising route to overcoming bottlenecks in computing power.
Xizhi Technology issued 13.8 million shares at an offer price of HKD183.2 per share. On debut, the stock opened at HKD880, 380% above the offer price, with market capitalisation exceeding HKD80 billion.
The company attracted 20 cornerstone investors, including Alibaba, GIC, BlackRock, Fidelity International and Temasek.
Davis Polk acted as Xizhi Technology’s Hong Kong and US legal counsel. Zhong Lun and Haiwen jointly advised on PRC law. The Zhong Lun team was led by partner Guo Kejun and regional partner Hu Yijing, serving as overall co-ordinator and project lead respectively, while the Haiwen partner Jackson Tang. Hogan Lovells advised on international sanctions matters.
CICC and Haitong International Securities acted as joint sponsors. Fangda served as Hong Kong, US and PRC legal counsel to the underwriters. Its domestic capital markets team was led by partners Leo Lou and Cong Dalin, the Hong Kong capital markets team by partner Colin Law and the US capital markets team by partner Annie Shen.
Headquartered in Shanghai, Xizhi Technology was founded in 2017. It leverages pioneering work in integrated photonics and semiconductor design, aiming to provide efficient computing solutions for next-generation computing infrastructure.
The prospectus stated that the proceeds would mainly be used for the R&D of optical interconnect hardware and optical computing products, the expansion of product and sales teams for commercialisation and general corporate purposes.