(Aug 5): Shenzhen Adtek Technology Co is close to raising up to two billion yuan (US$296 million or RM1.21 billion) in a private fundraising round ahead of its planned initial public offering (IPO) in Hong Kong, according to people familiar with the matter.

Singapore state investor Temasek Holdings Pte Ltd, Morgan Stanley’s private equity arm, and Asian investment firm CPE are likely to participate in the round, the people said, asking not to be identified because the deliberations are private.

The provider of optical connectivity products for data centres plans to use the proceeds to fund growth, the people said. Considerations are ongoing and no final decisions have been made, they said.

A representative for Adtek didn’t respond to a request seeking comment, while Temasek, Morgan Stanley and CPE declined to comment.

The pre-IPO round would serve as a stepping stone toward Adtek’s first-time share sale in Hong Kong. The company in May filed for an IPO in the city, adding to a wave of listings by Chinese companies related to data centres and artificial intelligence. It may seek to raise US$500 million (RM2.05 billion) or more and a valuation of US$3 billion to US$4 billion, people familiar with the matter have previously said.

Adtek was founded in 2007 and nine years later was named a National High-Tech Enterprise, its website shows. The company also has a factory in Vietnam.

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