Why Sigenergy’s IPO ignited market frenzy with oversubscription of 1,000 times

Chinese energy storage firm Sigenergy has ignited a market frenzy with its initial public offering (IPO) plan in Hong Kong, drawing an oversubscription of over 1,000 times, while its listed peer Guoxia Technology enjoyed a rally, as the duo capitalise on the artificial intelligence boom. Shanghai-based Sigenergy, which aims to raise HK$4.4 billion (US$561.6 million) in its IPO, is expected to be 1,414 times oversubscribed, as retail investors borrowed HK$358.6 billion from 17 brokerages, according to data tracked by Futu Securities. The company is expected to start trading on Thursday. The investor excitement extended to Hong Kong-listed firm Guoxia, whose shares surged nearly 15 per cent to close at HK$63.45 on Wednesday. What is Sigenergy, and why did it attract such investor interest? Sigenergy was founded in 2022 by former Huawei Technologies executive Xu Yingtong, who was with the company for 23 years and more recently led the tech giant’s photovoltaic and AI computing businesses. Sigenergy is focused on stackable distributed energy storage system (DESS) solutions that enable homes and businesses to generate, store and charge solar power, primarily in residential uses. Within two years of its establishment, Sigenergy became the world’s largest player in the niche market of stackable DESS with a 28.6 per cent market share, according to the company’s prospectus, citing data from research firm Frost & Sullivan. Its revenue surged over 154 times from 2023 to 2025, raking in 9 billion yuan (US$1.32 billion) last year, as its main product SigenStor, an AI-optimised energy system, contributed over 90 per cent of the company’s revenues. Sigenergy’s key markets are heavily skewed towards overseas demand for clean energy, with Asia-Pacific and Europe accounting for 46 per cent and 45 per cent in 2025, respectively. Aside from skyrocketing revenues, the company’s bottom line has been a bright spot as investors bet on the high-margin potential of AI-integrated energy systems. Sigenergy earned 2.9 billion yuan in net profit in 2025, compared to 83.8 million yuan in 2024 and a 373.5 million loss in 2023, according to its prospectus. What is Guoxia, and why is its share price rising alongside Sigenergy? Guoxia, which debuted on the Hong Kong bourse last December, is a major provider of energy storage systems for large-scale energy storage power stations. Founded in 2019 by energy industry veteran Feng Lizheng, Guoxia has rapidly expanded beyond energy storage systems for homes to large-scale power plants in recent years. Riding on the global energy storage boom, the company’s revenue doubled in 2025 to reach 2 billion yuan, while profits doubled to 103 million yuan, the company reported last month. Guoxia highlighted the demand for AI data centre infrastructure as a key driver of the jump in sales and profits. Large-scale systems accounted for over 76 per cent of the company’s 2025 revenue, as the company secured GWh-level projects in China’s Inner Mongolia and Shandong province. How is AI reinvigorating the energy storage industry? Sigenergy and Guoxia are gaining traction as investors eye a major shift in the renewable energy storage sector, which is merging with AI technology. Compared to traditional batteries, Sigenergy’s SigenStor can be accessed by an AI-powered app that helps users save money through energy planning, by monitoring electricity prices and usage, as well as factoring in weather. The company has also integrated AI into its solar inverters, energy storage systems, charging stations and energy management systems to ensure safety and improve efficiency. Meanwhile, Guoxia is riding on surging demand for AI computing power, which requires massive amounts of electricity, as it looks to double down on serving power-hungry AI data centres. “Looking ahead, we will fully leverage our core competencies in energy storage technology to provide high-reliability green power solutions for intelligent computing centres,” the company said in its annual report. Guoxia employs the strategy of “storage as tokens”, in which the company sees energy as a digital asset to generate AI data. “We have keenly observed that as AI large models reshape productivity through tokens, energy costs have become the critical variable determining the competitive landscape,” Guoxia said.