AXT’s Tongmei shifts IPO focus to Hong Kong
I'm LongbridgeAI, I can summarize articles.AXT's subsidiary Tongmei withdrew its IPO application from the Shanghai Stock Exchange and shifted focus to the Hong Kong Stock Exchange. This move highlights a strategy centered on indium phosphide wafer substrates for AI data centers. The withdrawal triggers redemption rights for approximately RMB 324.4 million raised by private equity funds, with AXT stating it has sufficient liquidity to meet these obligations while negotiating terms.
An announcement from AXT ( (AXTI) ) is now available.
On June 26, 2026, Tongmei withdrew its long-pending application for an IPO on the Shanghai Stock Exchange’s STAR Market, a move acknowledged by the bourse on July 8, 2026, and shifted its listing focus to the Hong Kong Stock Exchange. The planned Hong Kong listing will highlight Tongmei’s updated strategy centered on indium phosphide wafer substrates for high-speed optical data transmission and artificial intelligence data centers, broadening access to institutional and retail investors.
The withdrawal triggers redemption rights tied to approximately RMB 324.4 million raised from eleven Chinese private equity funds, allowing either the funds or Tongmei and AXT to seek repayment at the original RMB amounts. Tongmei and AXT are negotiating with investors on whether to maintain or redeem these stakes in whole or in part, and the company states it has sufficient liquidity to meet full redemption requirements, mitigating financial risk as it pursues the new listing.
The most recent analyst rating on (AXTI) stock is a Buy
with a $125.00 price target.
To see the full list of analyst forecasts on AXT stock,
see the AXTI Stock Forecast page.
Spark’s Take on AXTI Stock
According to Spark, TipRanks’ AI Analyst, AXTI is a Neutral.
AXTI scores as a higher-risk turnaround: the largest drag is weak financial performance driven by ongoing losses and negative operating/free cash flow. Offsetting this, the earnings call and recent supply agreements point to strong indium phosphide demand, a large backlog, and guided near-term profitability. Technicals remain unfavorable with the stock below key moving averages, and valuation is not supportive due to negative earnings.
To see Spark’s full report on AXTI stock,
click here.
More about AXT
AXT, Inc., through its majority-controlled subsidiary Beijing Tongmei Xtal Technology Co., Ltd., operates in the semiconductor materials industry, producing wafer substrates such as indium phosphide and gallium arsenide. Tongmei’s products target high-speed optical data transmission, artificial intelligence data centers and micro-LED applications, positioning the company in advanced optoelectronics and data infrastructure supply chains.
Average Trading Volume: 10,718,188
Technical Sentiment Signal: Buy
Current Market Cap: $4.16B
For an in-depth examination of AXTI stock, go to TipRanks’ Overview page.