IPO News | Semiconductor memory manufacturer Longsys has launched its IPO, with listing scheduled for September 8. The minimum subscription amount for one lot is HK$12,151.32.

Futu News, August 31, $LONGSYS (09976.HK)$ Announcement released: The IPO subscription period is from August 31 to September 3. The company plans a global offering of approximately 26.0778 million shares and is expected to list on September 8.

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Company Overview

Longsys is an independent brand semiconductor memory manufacturer. The company purchases memory wafers and controller chips from IDMs and controller chip suppliers, and does not engage in wafer fabrication. Leveraging its capabilities in controller and memory chip design, firmware development, and backend manufacturing (including system-in-package, testing, and assembly), Longsys designs, develops, manufactures via backend processes, and sells a complete portfolio of storage products for consumer, enterprise, and industrial applications.

The founding team recognized the immense potential of the global semiconductor memory market early on. Through persistent efforts and strategic development, the company expanded from trading semiconductor memory products to developing its own backend manufacturing technologies for storage products, and further evolved to build core competencies in controller and memory chip design, firmware development, and packaging and testing capabilities. This value-chain-integrated capability in semiconductor memory has enabled the company to build a portfolio of high-quality, high-performance products, earning widespread recognition from business partners and users.

Financial Overview

Longsys's total revenue increased from RMB 10,125.1 million in 2023 to RMB 17,463.7 million in 2024, and further to RMB 22,766.2 million in 2025. The company's gross profit rose from RMB 472.0 million in 2023 to RMB 2,759.2 million in 2024, and further to RMB 4,093.2 million in 2025. R&D expenses increased from RMB 593.7 million in 2023 to RMB 910.3 million in 2024, and further to RMB 1,047.8 million in 2025.

Source: Prospectus

Use of Proceeds

Regarding the use of proceeds, Longsys expects the net proceeds from the global offering to be approximately HK$6.02 billion (assuming the over-allotment option is not exercised and calculated based on the maximum offer price of HK$240.6). According to the prospectus, Longsys intends to allocate the funds raised from the global offering for the following purposes:

Approximately 78.3% will be used to enhance the Company's independent R&D and innovation capabilities in key areas (including chip design and advanced storage product development), for projects other than those funded by the proceeds from the 2025 A-share issuance; approximately 11.7% will be allocated for strategic investments and/or acquisitions to further consolidate the Company's overall competitive position; and approximately 10% is expected to be used for working capital and other general corporate purposes.