Transsion Holdings, the Shenzhen-based smartphone maker dominating Africa's mobile phone market, raised $390 million from a Hong Kong share sale after pricing near the top end. The company sold 86.6 million shares at HK$35.30 each, compared with the marketed maximum of HK$38.80, according to a filing to the city's stock exchange. Trading is expected to begin Oct. 15.
Transsion's Shanghai-listed shares have declined about 27% this year. The offering tests investor appetite for listings outside the AI supply chain, especially as increasing memory costs threaten margins. While AI funding needs have driven Hong Kong share sales to a record quarter, other sectors have suffered.
Shein Global Holdings Ltd., which raised $1.7 billion in September, has seen shares decline about 30% since debut. Transsion, behind brands including Tecno and Infinix, commands 53% of Africa's mobile phone market by unit sales, known as the "King of Africa." Cornerstone investors, guaranteed allocation for holding stock six months, agreed to buy about 37% of the base offering at maximum price. They include GIC Pte, E Fund Management Co., Millennium Capital, Golden Link Worldwide Ltd., and an investment arm of Shenzhen Longsys Electronics Co. Proceeds will accelerate AI-related technology development, including AI assistants and agents, and strengthen product differentiation.
Citic Securities Co. is the sole sponsor of the offering.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing