FS Innovation (03355.HK) is in the midst of its IPO, with the AI revolution wave's "pickaxe sellers" filling a gap in Hong Kong's stock market sectors

Recently, there has been a recovery in Hong Kong's IPO market, with another high-quality new stock debuting - FS Innovation (03355.HK) officially commencing its IPO.

As the world's second-largest online DTC network solutions provider, Feisu Innovation boasts core advantages of 'superior track, high margins, and stable profitability' under the impetus of the AI industry wave, combining both stability and growth potential.

The company’s listing in Hong Kong perfectly aligns its global strategic layout with the international characteristics of the Hong Kong market, offering more avenues for global long-term capital to participate in the development of the AI industry.

IPO Details

On March 13, Shenzhen Feisu Innovation Technology Co., Ltd. (referred to as: Feisu Innovation, 03355.HK) disclosed a placement announcement on the Hong Kong Stock Exchange, with the offering running from March 13 to March 18. It is expected to list on the main board of the Hong Kong Stock Exchange on March 23, 2026.

Feisu Innovation’s offer price for this placement is between HKD 35.2 and HKD 41.6 per share, with plans to globally distribute 40 million H-shares, accounting for 10% of the total shares post-issuance, along with a 15% over-allotment option; each lot consists of 100 shares, with an entry fee of HKD 4,201.96, aiming to raise approximately HKD 1.408 billion to HKD 1.664 billion (assuming no exercise of the over-allotment option).

The company is adopting Mechanism B for this issuance, with an initial allocation ratio of 10% for the Hong Kong public offering and without a clawback mechanism.

Feisu Innovation has introduced 11 cornerstone investors, including Hao Fund, Great Holding (Mr. Yuan Yonggang), WT Asset, Caitong SEIII (Caitong Asset Management), Shanghai Juming, Forward Capital, SCGC Capital (Shenzhen Capital Group), Aether, GF Fund Management, Shenzhen Kaifeng Management, Wider Huge (Ms. Laurena Wu), among others.

The cornerstone investors collectively subscribed to approximately USD 90.22 million (about HKD 704 million) worth of shares. Calculated at the median offer price of HKD 38.40, the cornerstone subscription accounts for 45.83% (assuming no exercise of the over-allotment option).

Notably, several entities under Shenzhen Capital Group previously participated in the company’s Series C funding round.

Another highlight is the impressive sponsor team. The joint sponsors for this IPO include CICC, CITIC Securities International, and China Merchants Securities International. These brokerage firms have had relatively high probabilities of their sponsored projects experiencing gains on the first day of listing in recent years.

Information on cornerstone investors, source: Feisu Innovation prospectus

Fundamental situation: Leveraging the rapid global development of AI, deeply implementing a globalization strategy

In recent years, AI has flourished and become a significant force driving technological progress and global economic growth. Network infrastructure plays a crucial role in integrating AI into commercial operations, standing alongside computing power infrastructure and storage infrastructure as the three core infrastructures that build the digital world.

According to Frost & Sullivan, the market size of enterprise network solutions is expected to grow from $162.8 billion in 2024 to $245.3 billion in 2029, with a compound annual growth rate (CAGR) of 8.5%.

Against the backdrop of rapid industry development, Fast Innovation leverages an online DTC model to provide scalable, cost-effective, and comprehensive one-stop network solutions to the global market, including high-performance networking equipment, scalable network device operating systems, and cloud-based network management platforms.

The company has built a portfolio of over 120,000 proprietary SKUs, empowering various scenarios such as high-performance computing, data centers, enterprise networks, and telecom networks. In the AI field, the company’s breakthrough products include high-speed 800G optical modules and switches, silicon photonics transceivers, high-density cabling management solutions, and active wavelength division multiplexers, supporting the implementation of AI applications and achieving an evolution from being a mere 'tool provider' to an 'ecosystem enabler'.

In 2025, approximately 82,300 customers placed orders through the company's online sales platform, with each customer generating an average revenue of about $36,100.Customer loyalty continues to rise, with a net revenue retention rate of 97.5% in 2025.As of March 4, 2026, the company has served over 500,000 customers across more than 200 countries and regions, covering approximately 60% of Fortune 500 companies.

Based on 2024 revenue, Fast Innovation holds a 6.9% market share in the global online DTC network solutions market, ranking second and making it the largest platform-based company in this market. Additionally, in the high-performance network solutions market (100G and above), the company ranks first.

In recent years, Fast Innovation has demonstrated relatively stable financial performance.The company's revenue compound annual growth rate from 2022 to 2024 was 14.6%. The revenue for January to September 2025 reached 2.175 billion yuan, with a net profit of 423 million yuan, surpassing the total for the entire year of 2024. The gross margin increased to 52.6%.

Over the past few years, more than 99% of Fast Innovation's revenue has come from overseas markets, with a global business presence, which aligns well with the international characteristics of the Hong Kong stock market.This IPO is not the end point but the starting point of the company's Globalization 2.0 phase.

The proceeds from this fundraising will be allocated primarily towards 'digital and intelligent R&D' (40%) and 'enhancing global delivery capabilities' (30%).

Going forward, the company plans to strengthen its product and solution development capabilities, advance the underlying system architecture, develop new protocol functionalities, continuously drive innovation, solidify its technological foundation, and support customers' evolving needs and business expansion.

At the same time,The company plans to establish a regional headquarters in Singapore as the central hub for its global supply chain.This strategic move aims to create an integrated closed-loop hub with capabilities in overseas direct procurement, localized manufacturing, intelligent global delivery, and comprehensive end-to-end customer service. This will allow the company to implement multi-regional sourcing and localized production, helping to mitigate geopolitical risks and reduce reliance on supply chains concentrated in a single country. $FS.COM (03355.HK)$

Fast Innovation’s IPO holds strategic significance for the Hong Kong stock market.

From a global capital markets perspective, Fast Innovation's listing means that Hong Kong stocks welcome the 'first enterprise network solutions stock,' filling a gap in the AI-related network communications segment in the Hong Kong market. This is strategically important for improving the structure of the Hong Kong stock market and attracting long-term international investment.

For many years, China's A-share market has been home to numerous listed companies related to AI computing power, storage, and enterprise networking equipment. Benefiting from the development of the AI industry and the logic of upstream domestic substitution, these companies have formed significant sector clustering effects and valuation benchmarks.

However, looking at the Hong Kong stock market, its long-standing industrial structure has been dominated by internet platforms, innovative pharmaceuticals, and traditional financial real estate. While significant 'Hong Kong stock characteristic sectors' have emerged in consumer internet and biomedicine, the layout in hard tech fields such as AI infrastructure, computing chips, and storage semiconductors is relatively weak, with obvious gaps in these sectors.

Nevertheless, this situation began to see positive changes last year. With the Hong Kong Stock Exchange's optimization of the listing system for specialized technology companies and the increase in international financing needs of a group of domestic hard tech enterprises, AI hardware and large model companies have gradually chosen to go public on the Hong Kong stock market.

It is worth noting that these scarce hard tech new stocks quickly became the market focus after listing, attracting diverse investors including global sovereign funds, hedge funds, and southbound capital.

In this context, Fast Innovation has undoubtedly injected new vitality into the Hong Kong stock market. Fast Innovation’s main business focuses on enterprise network communication solutions, a niche sector that was almost non-existent in the Hong Kong stock market.

Therefore,This IPO by Fast Innovation not only signifies that the Hong Kong stock market officially welcomed the 'first enterprise network solutions stock,' but more importantly, it fills the structural gap in the network communication segment of the AI industry chain within the Hong Kong stock market.

The improvement in market structure helps attract more long-term funds focused on the global technology sector to include Hong Kong stocks in their core allocation pool. This has profound implications for enriching investor options, enhancing the overall valuation of Hong Kong stocks, and solidifying Hong Kong's position as an international financial center.

Epilogue

In recent years, as capital market divergence has intensified, investors' aesthetic standards have gradually matured. Companies with solid financial data support, global business layouts, and core competitive barriers are more likely to win the favor of long-term capital.

As a hardcore company capable of playing a key 'enabler' role in the wave of AI technological revolution, Fast Innovation demonstrates high earnings visibility and combines growth potential with stability.

This listing of Fast Innovation exhibits strong alignment with the times and strategic synergy, successfully achieving resonance among the three core drivers: the wave of AI industry development, the company’s strategic development, and the demands of the capital market.

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