【New Stock IPO】Zejing Holdings 2632 Offer to Raise Up to HK$780 Million, Mainland Auto HUD Solution Provider, Excess Application at HK$114 Million Already Fully Subscribed, Entry Cost for One Lot HK$2,424

Zeijing Holdings (New Listing Number: 02632) Initial Public Offering from March 16 to 19. Mainland China automotive HUD (Head-Up Display) solution provider Zeijing plans to issue 16.227 million H-shares, with 10% available for public sale in Hong Kong. The offering price ranges from HKD 42 to HKD 48, raising up to HKD 780 million. Each lot consists of 50 shares, with an entry fee of HKD 2,424.20. Zeijing is expected to list on March 24, with Haitong International and CITIC Securities serving as joint sponsors.

As of the evening of March 16, Zeijing received HKD 114 million in margin subscriptions, with HKD 77.89 million raised from the public offering, representing a 0.5 times oversubscription.

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Zeijing focuses on HUD solutions, mainly offering two products: Windshield HUD (W-HUD, branded as CyberLens) and Augmented Reality HUD (AR-HUD, branded as CyberVision). Based on 2024 sales projections, it ranks second among Chinese HUD solution providers with a market share of 16.2%.

By the end of September last year, Zeijing had sold a total of 1.9 million HUD units, serving 18 automakers, including NIO and Xiaomi Motors.

In the first nine months of last year, Zeijing reported revenue of RMB 480 million, an 11.7% increase year-on-year. The parent company’s attributable loss was RMB 350 million, a 169.2% increase.

Founders Zhang Tao and other concerted parties control a total of 44.66% of shares. Xiaomi (01810) Chairman Lei Jun’s Shunwei Capital holds 7.1%, Geely’s investment firm Qianzhan Yuan Zhi holds 7%, and FAW Investment owns 2.7%.

Zeijing’s two institutional investors are closely related to local government. They include cornerstone investors such as Yingke Yihou and Beijing Hong Kong High-End Talent, both controlled by the Beijing Shunyi State-owned Assets Supervision and Administration Commission, with a combined investment of RMB 110 million.

Use of net proceeds

• 46.7%: Expansion and automation of production lines, upgrading to intelligent manufacturing
• 32.4%: Enhancing R&D and technological capabilities, upgrading existing solutions, and developing new products based on core technologies
• 10.9%: Potential strategic collaborations with industry participants focused on optical imaging, near-eye displays, wearable devices, and related fields
• 10%: Working capital and general corporate purposes

Source: Zeijing Holdings Announcement

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