Zhaowei Electromechanical (02692) has completed its public subscription period, which ran from February 27 to noon on March 4. The company is expected to list and begin trading on March 9. Market statistics show that as of noon on Wednesday, March 4, the public offering segment saw exceptionally strong demand, attracting HK$233.82 billion in margin financing applications, representing an oversubscription rate of 1,186 times.

Under the issuance plan, Zhaowei Electromechanical plans to offer 26,748,300 H shares, with the public offering accounting for 10% of the total. The maximum funds to be raised are approximately HK$1.971 billion. The offer price is set at HK$73.68 per share, with a board lot of 100 shares, making the entry cost HK$7,442.31 per lot.

Regarding the use of proceeds, approximately 35% will be allocated to global technology research and development and expanding the product portfolio. About 30% will be used to increase global production capacity and improve production efficiency. Roughly 15% is designated for selective global strategic partnerships, investments, and acquisitions. Another 10% will be used to expand the global service and sales network and enhance global marketing efforts. The remaining 10% will serve as working capital and for general corporate purposes.

Zhaowei Electromechanical has secured a strong lineup of cornerstone investors, including Hillhouse Capital, Gaoyi Assets, Korea's Mirae Asset, U.S. financial trading group Jump Trading, GF Fund Management (Hong Kong), Topstar (300607.SZ), Minyin International, and Rui Xiang Capital. Together, these investors have subscribed to shares worth a total of RMB 579 million.

According to the prospectus, a Frost & Sullivan report indicates that based on 2024 revenue, Zhaowei Electromechanical is the largest integrated micro transmission and drive system product provider in China and the fourth largest globally, with market shares of 3.9% and 1.4%, respectively.

Financially, for the years 2022, 2023, and 2024, as well as for the nine months ended September 30, 2024, and 2025, Zhaowei Electromechanical reported revenues of approximately RMB 1.152 billion, RMB 1.206 billion, RMB 1.525 billion, RMB 1.057 billion, and RMB 1.255 billion, respectively. Profits for the corresponding periods were approximately RMB 150 million, RMB 180 million, RMB 225 million, RMB 159 million, and RMB 182 million.