Guohe Technology IPO: Price, Details & How AI Demand Fuels Growth

Hong Kong-based printed circuit board (PCB) manufacturer, 廣合科技 (Delton Technology, 01989.HK), is nearing the finish of its initial public offering (IPO) period, with strong indications of significant oversubscription. The company, already listed on the Shenzhen Stock Exchange, is seeking to raise up to HK$3.31 billion (approximately US$423 million) through the issuance of 46 million H-shares, with 10% offered to the Hong Kong public. As of the evening of March 16, 2026, the IPO had garnered HK$112.1 billion (approximately US$14.3 billion) in margin subscriptions, representing an oversubscription rate of 339 times the 330 million HKD public offering portion, according to reports from Hong Kong Economic Times.

Delton Technology’s IPO Details and Market Position

The final price for the shares is set at HK$71.88 per share, making the entry price for a board lot of 100 shares approximately HK$7,260.5 (roughly US$930). Shares are expected to begin trading on the Hong Kong Stock Exchange on March 20, 2026, with China Securities as the joint sponsor alongside HSBC. Delton Technology positions itself as a leading PCB manufacturer in mainland China, and ranks third globally in the manufacturing of PCBs for servers used in computing infrastructure, according to the IPO prospectus.

The company’s success is partially attributed to the growing demand for PCBs driven by the expansion of artificial intelligence (AI) and related technologies. Ming Pao reports that Delton is benefiting from the current AI boom, with steady performance and increasing orders.

A-Share Discount and Investor Considerations

A key consideration for investors is the price differential between the Hong Kong-listed H-shares and the company’s existing A-shares traded on the Shenzhen Stock Exchange (001389.SZ). As of March 16, 2026, the A-share price closed at RMB 117 (approximately HK$132.84), representing an 85% premium over the maximum H-share offer price of HK$71.88. This translates to an A-share water mark of 96.7%, meaning the H-share offering is significantly discounted compared to its A-share counterpart. The discount has narrowed slightly from 49.2% earlier in the week, as the A-share price has decreased. The table below, sourced from HKET, illustrates the changing premium:

This discount is typical for H-share offerings, reflecting differing investor bases and market dynamics. Investors considering the IPO should weigh the potential for convergence between the A-share and H-share prices, as well as the overall growth prospects of the PCB industry.

Delton Technology’s Business and Use of Proceeds

Delton Technology specializes in the manufacturing and sale of PCBs, essential components in a wide range of electronic devices. The company’s products are used in various sectors, including communications, computers, consumer electronics, and industrial equipment. The IPO proceeds, estimated at HK$3.1754 billion, will be allocated to several key areas, including expanding production capacity, investing in research and development, and strengthening its sales and marketing network. Specifically, the company intends to use the funds to enhance its capabilities in producing high-density interconnect (HDI) PCBs and advanced packaging substrates, crucial for supporting the increasing complexity of electronic devices.

Competitive Landscape and Industry Trends

The PCB industry is highly competitive, with numerous players vying for market share. Delton Technology faces competition from both domestic and international manufacturers. However, the company’s focus on high-growth segments, such as server PCBs and advanced packaging substrates, positions it favorably to capitalize on emerging opportunities. The demand for PCBs is expected to continue growing, driven by the proliferation of 5G technology, the Internet of Things (IoT), and the increasing adoption of AI. Stock360 highlights the company’s position as a key player in the sector.

Key Shareholders and IPO Timeline

The major shareholders of Delton Technology include Xiao Hongxing, holding 48.43% of the company’s equity, and Zeng Hong, with a 9.15% stake. The IPO timeline is as follows:

• Subscription Period: March 12 – March 17, 2026
• Pricing Date: March 18, 2026
• Publication of Results: March 19, 2026
• Ballot and Refund: March 19, 2026
• Trading Begins: March 20, 2026

Looking Ahead: Potential Risks and Investor Outlook

Even as the IPO has generated significant interest, potential investors should be aware of certain risks. These include fluctuations in raw material prices, increasing competition, and potential disruptions in the global supply chain. The company’s reliance on a limited number of key customers could pose a risk. However, Delton Technology’s strong market position, technological capabilities, and growth prospects suggest it is well-positioned to navigate these challenges. Investors should carefully review the company’s prospectus and consider their own risk tolerance before making an investment decision.

The successful completion of the IPO will provide Delton Technology with the financial resources to accelerate its growth strategy and strengthen its position as a leading PCB manufacturer. The company’s performance in the coming months will be closely watched by investors and industry observers alike.