InnoLight broke issue price on its first day; rumors of 1.6T price cuts are the culprit

Hong Kong stock optical module leader Zhongji Innolight (03308.HK) broke issue price on its first day of listing, opening at HK$9.71, below the HK$9.80 issue price, and briefly dipped below HK$9 during trading. Rumors circulated that 1.6T optical modules were slashed to $600, prompting the company to hold an emergency conference call to deny this, stating actual selling prices are "far higher than rumored levels," with peers not having such low prices. Management revealed real orders for 2027 have been placed, with AI demand visibility extending to 2028. However, the market ignored it; A-shares plummeted over 15% in sync, wiping out over HK$160 billion in market cap in a single day.