Chinese cloud firm Unisplendour eyes $1 billion via Hong Kong listing

Unisplendour Corporation, a Chinese cloud computing and IT infrastructure company, is planning a Hong Kong listing to raise around $1 billion.

According to Bloomberg, the company has approached several banks to pitch for roles in the potential listing, although details such as size and timing are still being discussed.

Unisplendour is currently listed on the Shenzhen Stock Exchange and is valued at approximately $9.7 billion. Its shares have climbed 45% over the past year. The company is part of a growing trend of mainland Chinese businesses exploring dual listings in Hong Kong, a move that provides access to international capital.

Hong Kong has made it easier for mainland companies to list by granting waivers that allow them to issue at least 15% of their shares on the Hong Kong exchange. Talks are also underway to further lower the barriers, showing the exchange’s efforts to strengthen its relations with Chinese markets.

Founded in 1999, Unisplendour is partially state-owned and operates under Tsinghua Unigroup. The company provides cloud computing services, develops software, and manufactures servers and computing storage systems. It also holds a majority stake in H3C, which manages Hewlett Packard’s Chinese server, storage, and technology business.

Tsinghua Unigroup, Unisplendour’s parent company, faced bankruptcy in 2021 but underwent a restructuring process. By 2022, Beijing Zhiguangxin Holding acquired the company, helping it stabilise and refocus on expansion.

Hong Kong’s stock exchange has been actively building stronger connections with mainland Chinese markets. Fortune reported in April 2024 that the China Securities Regulatory Commission (CSRC) had taken new measures to deepen ties between the stock markets of Hong Kong, Shenzhen, and Shanghai. One key initiative is the Shanghai–Shenzhen–Hong Kong Stock Connect program, which enables cross-border investments between Hong Kong and mainland China.

Encouraging Chinese companies to list in Hong Kong is part of a broader strategy to attract international investors. However, due to geopolitical concerns between the United States and China, some companies are unable to list in Hong Kong. Fortune indicated that 2024 was a particularly tough year for the exchange.

Despite these challenges, Unisplendour’s potential Hong Kong listing reflects the growing relevance of dual listings for Chinese companies looking to expand their financial horizons. If it moves forward, it might signal renewed confidence in Hong Kong’s role as a bridge to global markets.

(Image by Pixabay)

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