Unisplendour Corporation, a prominent Chinese cloud computing and IT infrastructure company, is in the works for a Hong Kong listing with the aim of raising approximately $1 billion.
As reported by Bloomberg, the company has reached out to various banks to discuss potential roles in the listing process, although specific details such as size and timing are still under negotiation.
Unisplendour is currently listed on the Shenzhen Stock Exchange and holds a valuation of around $9.7 billion. Over the past year, its shares have seen a notable 45% increase. The company is part of a growing trend among mainland Chinese businesses considering dual listings in Hong Kong, which offers access to international capital.
Hong Kong has implemented measures to facilitate mainland companies’ listings by granting waivers that enable them to issue at least 15% of their shares on the Hong Kong exchange. Discussions are also underway to further reduce barriers, highlighting the exchange’s commitment to strengthening ties with Chinese markets.
Established in 1999, Unisplendour is partially state-owned and operates under Tsinghua Unigroup. The company specializes in providing cloud computing services, software development, and the production of servers and computing storage systems. It also holds a controlling stake in H3C, which manages Hewlett Packard’s Chinese server, storage, and technology operations.
Unisplendour’s parent company, Tsinghua Unigroup, faced financial challenges in 2021 but underwent a restructuring process. By 2022, Beijing Zhiguangxin Holding had acquired the company, aiding in its stabilization and refocusing on growth.
The Hong Kong stock exchange has actively worked towards strengthening connections with mainland Chinese markets. Fortune reported in April 2024 that the China Securities Regulatory Commission (CSRC) had introduced new measures to enhance collaboration between the stock markets of Hong Kong, Shenzhen, and Shanghai. Notably, the Shanghai–Shenzhen–Hong Kong Stock Connect program facilitates cross-border investments between Hong Kong and mainland China.
Encouraging Chinese companies to list in Hong Kong forms part of a broader strategy to attract global investors. However, geopolitical tensions between the United States and China have hindered some companies from listing in Hong Kong, making 2024 a challenging year for the exchange, as reported by Fortune.
Despite these obstacles, the potential listing of Unisplendour in Hong Kong underscores the increasing importance of dual listings for Chinese companies seeking to broaden their financial reach. If the listing proceeds, it could signify a renewed confidence in Hong Kong’s position as a gateway to global markets.
(Image by Pixabay)
See also: Microsoft outperforms Amazon and Google in cloud AI
Interested in learning more about cybersecurity and the cloud from industry experts? Be sure to explore Cyber Security & Cloud Expo happening in Amsterdam, California, and London. Discover additional upcoming enterprise technology events and webinars powered by TechForge here.
