【New Stock IPO】 Mainland wireless communication module manufacturer MegSmart Technologies 3268 IPO, with nearly 6.7 billion in margin financing, oversubscribed 65 times, with an entry fee of 2,915 yuan, introduces 8 institutional investors including Japan's Nissho Electronics. How much higher are A-shares compared to H-shares?

Mainland Wireless Communication Modules and Solutions Provider Megalith Intelligent (Listing Number: 03268) Subscribed from February 27 to March 5, offering 35 million H-shares, with 10% public offering. The offer price is not higher than HKD 28.86 per share, raising up to HKD 1.01 billion. Megalith Intelligent offers a minimum lot of 100 shares, with an entry fee of HKD 2,915.10. The listing is expected on March 10, with China International Capital Corporation as the exclusive sponsor.

According to comprehensive brokerage data, as of 4:30 PM on March 4, nearly HKD 6.7 billion in margin subscriptions have been recorded, with a public offering subscription of HKD 101 million, representing a 65.3-fold oversubscription.

Based on the IPO range, Megalith Intelligent’s maximum market capitalization after listing is estimated at HKD 15.05 billion.

Megalith Intelligent A-Share Price

Megalith Intelligent A-shares (Shenzhen: 002881) closed at RMB 46.76 on February 26 (the day before the H-share IPO), equivalent to HKD 53.33. Based on this, the H-share IPO price (not exceeding HKD 28.86) offers a 46% discount compared to the A-shares, which is an 85% premium over the A-shares’ high water mark.

Megalith Intelligent’s Two Main Business Modules

Megalith Intelligent’s business is divided into two main modules: one is the smart module, equipped with System-on-Chip (SoC) processors and intelligent operating systems; the other is the data transmission module, focusing on data transfer, security, and high-throughput data exchange. According to Frost & Sullivan, by 2024, Megalith Intelligent ranks fourth globally in the wireless communication module industry, accounting for 6.4% of the global market share.

Megalith Intelligent Introduces 8 Cornerstone Investors, Including Japanese Electronic Company Meiko Electronics and Others

In this IPO, Megalith Intelligent has attracted 8 cornerstone investors, including state-owned enterprise Nantong Kechuang Investment Group’s Baoyue Gongying, Japanese electronics company Meiko Electronics (TSE: 6787) controlled Mingxing Electronics Hong Kong, Riming Technology (Shenzhen: 002970) subsidiary Riming Electronics, Harvest Oriental SP under Jushen Fund, Jinyi Capital (whose IPO subscription funds come from Tsinghua University Education Foundation), Kaipang Wealth, Zhongxing, Zhou Zengchang, collectively subscribing to about HKD 460 million worth of shares.

Megalith Intelligent plans to allocate approximately 55% of the net proceeds to enhance R&D and innovation capabilities; about 10% to expand overseas sales networks and promote the group’s products in international markets; about 10% for strategic investments and/or acquisitions; approximately 15% to repay certain interest-bearing bank loans; and the remaining about 10% for operating capital and general corporate purposes.

Source: HKEX Announcement

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