Shanghai Xizhi Technology Announces Details of Hong Kong IPO: Key Points for Investors

Key Highlights of the Global Offering

• IPO Structure: Shanghai Xizhi Technology Co., Ltd. (“the Company”) is launching a Global Offering of its H Shares on the Hong Kong Stock Exchange. The total number of Offer Shares under the Global Offering is 13,795,215 H Shares, subject to an Over-allotment Option.
• Offer Price Range: The expected Offer Price is between HK\$166.60 and HK\$183.20 per H Share. Investors must pay the maximum price upfront, with a refund if the final price is lower.
• Breakdown of Shares:
  • Hong Kong Public Offering: 689,775 H Shares (approx. 5%)
  • International Offering: 13,105,440 H Shares (approx. 95%)

  Both tranches are subject to reallocation.

• Stock Code: 01879
• Nominal Value per H Share: RMB1.00
• Over-allotment Option: Up to 2,069,280 additional H Shares (15% of initial offer) may be issued to cover over-allocations. If the Over-allotment Option is fully exercised, the additional shares will represent approximately 2.20% of the enlarged share capital post-listing.

Potential Price-Sensitive Information & Shareholder Notes

• Stabilization Actions: The Stabilizing Manager, China International Capital Corporation Hong Kong Securities Limited, may undertake price stabilization in the 30 days following the listing. However, there is no obligation to do so, and stabilization will not extend beyond May 23, 2026. After the stabilization period, share prices could face downward pressure if demand weakens.
• Allocation Reallocation: If the International Offering is undersubscribed and the Hong Kong Public Offering is fully subscribed or oversubscribed, up to 689,775 H Shares can be reallocated to the Hong Kong Public Offering, potentially increasing its size to 1,379,550 H Shares.
• Termination Rights: The Joint Sponsors and Coordinators reserve the right to terminate obligations under the Hong Kong Underwriting Agreement prior to 8:00 a.m. on the Listing Date if certain events (detailed in the Prospectus) occur. This could impact the success of the listing and the share price.
• Fully Electronic Application: The Hong Kong Public Offering is fully digital. No printed Prospectus will be provided; investors must download it from the Stock Exchange or the Company website.
• Minimum Application: Investors must apply for at least 15 H Shares. Applications for other numbers will be rejected.
• Allotment & Refunds: If the Offer Price is set below the maximum price paid, the difference will be refunded. Refunds and share certificates are expected to be dispatched before or on April 28, 2026.
• Listing and Trading: Dealings in H Shares are expected to begin on April 28, 2026, with shares traded in board lots of 15.
• Settlement: Shares will be eligible for clearing and settlement in CCASS from the first day of trading.

Timetable for the IPO

• Application Period: April 20, 2026 (9:00 a.m.) to April 23, 2026 (12:00 noon)
• Price Determination Date: On or before April 24, 2026 (12:00 noon)
• Announcement of Offer Price and Allocation Results: On or before April 27, 2026 (11:00 p.m.)
• Start of Trading: April 28, 2026 (9:00 a.m.)

Application Procedures

• Channels:
  • HK eIPO White Form: For those who want physical H Share certificates, applications must be made at www.hkeipo.hk.
  • HKSCC EIPO Channel: For those applying via brokers/custodians who are HKSCC Participants, shares will be credited to their CCASS accounts.
• Charges: Applications must include brokerage (1%), SFC transaction levy (0.0027%), Stock Exchange trading fee (0.00565%), and AFRC transaction levy (0.00015%).
• Application Size and Payment Table: A detailed table in the announcement lists the required payment for various application sizes (from 15 to 344,880 shares).
• Results Announcement: Allocation results will be published online and available via dedicated phone lines and websites.

Shareholder and Investor Considerations

• Market Risks: After the stabilization period, the share price may be subject to significant volatility, especially if there is a lack of further support or lower-than-expected subscription levels.
• Refund and Allotment Risks: Investors should be aware that any unsuccessful or partially successful applications will have their funds (and associated fees) refunded without interest. H Share certificates only become valid at 8:00 a.m. on the Listing Date and trading before receipt is at the investor’s risk.
• Termination of IPO: If the IPO is terminated before the Listing Date, all application monies will be refunded, but this could have an adverse impact on the Company’s valuation and investor sentiment.

Conclusion

The Shanghai Xizhi Technology IPO is notable for its substantial offer size, high maximum price, and the possibility for significant reallocation between the international and Hong Kong tranches. Investors should pay close attention to the stabilization period, the final pricing, and the potential for termination or changes in offering structure, as these are all factors that could have an immediate and material impact on the Company’s post-listing share price.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are urged to review the official Prospectus and consult with their professional financial advisors before making any investment decisions. Shanghai Xizhi Technology Co., Ltd. and its advisers accept no responsibility for any losses arising from reliance on this information.

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