Tuopu CNC (07688) has announced its initial public offering, with the subscription period running from May 12 to May 15, 2026. The company plans a global offering of 65.33 million shares, with 10% allocated for the Hong Kong public offering and 90% for the international offering. The offer price is set at HK$26.39 per share, with a board lot of 100 shares. Trading of the shares on the Stock Exchange is expected to commence on May 20, 2026.
The company is a Chinese enterprise focused on the research and development, design, production, and sales of high-end intelligent manufacturing equipment, primarily five-axis computer numerical control (CNC) machine tools. It specializes in developing five-axis CNC machine tools to meet the demand for advanced manufacturing in China's aerospace sector. According to a CIC report, the company ranked first in China's aerospace five-axis CNC machine tool market in 2025, with a market share of 10.0%. Among all suppliers in the broader Chinese five-axis CNC machine tool market, it ranked fifth overall and second among domestic suppliers, holding a 3.9% market share.
The same source indicates that five-axis CNC machine tools are fundamental industrial manufacturing equipment. Due to their ultra-high precision, efficiency, and intelligent processing capabilities, their applications are becoming increasingly widespread across various industries. The market size for five-axis CNC machine tools is projected to grow from RMB 12.9 billion in 2025 to RMB 31.9 billion in 2030, representing a compound annual growth rate of 19.8%.
During the track record period, the company has expanded its market presence into general industries, including automotive, energy, medical equipment, shipbuilding, machine tool equipment, and mold manufacturing.
The company has entered into cornerstone investment agreements with RBC, 3W, Boyu, HHLRA, UBS AM Singapore, CDH, Xinting Fund, Fullgoal Fund, Fullgoal Hong Kong, China Asset Management, Shanghai Minhang, TT International, Mirae Asset, and Goldman Sachs Asset Management. These cornerstone investors have agreed, subject to certain conditions, to subscribe for shares at the offer price for a total amount of US$110 million (rounded down to the nearest complete board lot of 100 H shares).
Based on the offer price of HK$26.39 per share, the cornerstone investors will subscribe for a total of 32.665 million offer shares. This represents (i) 50% of the total offer shares under the global offering and approximately 8.0% of the company's total issued share capital upon completion of the global offering (assuming the over-allotment option is not exercised); or (ii) approximately 43.5% of the total offer shares under the global offering and approximately 7.8% of the company's total issued share capital upon completion (assuming the over-allotment option is fully exercised).
Assuming (i) an offer price of HK$26.39 per H share and (ii) the over-allotment option is not exercised, the company estimates net proceeds from the global offering (after deducting underwriting fees and related expenses) to be approximately HK$1.606 billion.
In line with its strategy, the company intends to allocate the net proceeds from the global offering as follows, according to the specified amounts and schedule: - Approximately 61.8% will be allocated for research and development advancement. - Approximately 10.3% will be allocated for expanding the sales and marketing network. - Approximately 12.1% will be allocated for potential acquisitions and investments in key component manufacturers, such as servo drives and direct-drive torque motors. - Approximately 6.0% will be allocated for repaying part of the Group's interest-bearing bank borrowings. - Approximately 9.9% will be allocated for working capital and general corporate purposes.