- Deal could launch shortly after regulatory approval, sources say
- Company's shares up 87% year-to-date on strong earnings momentum
- Hong Kong tops global IPO rankings in Q1, HKEX says
HONG KONG/SINGAPORE, May 4 (Reuters) - Chaozhou Three-Circle Group, a Chinese maker of small ceramic components used in phones, cars, data centres and telecom equipment, aims to raise up to $1 billion in a Hong Kong listing, two sources with knowledge of the matter said.
The Shenzhen-listed company is awaiting approval from the China Securities Regulatory Commission, with the sources expecting the deal to launch shortly after clearance, potentially as early as the end of June.
The sources declined to be named as the information is private.
Three-Circle and China Galaxy International, the sole sponsor of the deal, did not respond to requests for comment on Monday.
At up to $1 billion, the deal would add to a strong year for Hong Kong listings. The city maintained its position as the world's top IPO venue by funds raised in the first quarter of 2026, with 40 listings raising HK$110.4 billion ($14.1 billion), according to an HKEX statement on Thursday.
The deal would also give the Chaozhou, Guangdong-based company fresh capital as it expands overseas and targets more global customers in clean energy, data centres, telecom equipment, consumer electronics and cars.
Three-Circle makes ceramic components used to control heat, transmit signals and store electric charge for markets such as smartphones, cars, fibre-optic networks and data centres.
In a draft prospectus filed in December 2025, the company cited Frost & Sullivan as saying it was a global leader in advanced electronic ceramic materials and components.
It plans to use the proceeds for overseas construction, expansion and automation projects in Thailand and Germany, as well as research and development and working capital, the filing said.
Shares of Three-Circle listed in Shenzhen have surged 87% year-to-date, valuing the company at around $24 billion, according to LSEG data.
The company reported strong first-quarter results on April 23, with net profit jumping 48.5% to 790.9 million yuan ($115.8 million), while revenue rose 46.3% to 2.68 billion yuan.
That followed a strong 2025, when net profit rose 19.5% to 2.62 billion yuan and revenue climbed 22.1% to 9.01 billion yuan, company filings showed.
($1 = 7.8334 Hong Kong dollars)
($1 = 6.8273 Chinese yuan renminbi)
Reporting by Kane Wu in Hong Kong and Yantoultra Ngui in Singapore. Editing by Mark Potter
Source: Reuters