Shenzhen Woer’s Hong Kong Listing Signals Growth in Advanced Materials
O’Melveny recently advised Shenzhen Woer Heat-Shrinkable Material Co., Ltd. On its approximately US$363 million listing on the Hong Kong Stock Exchange. This successful offering underscores the increasing investor interest in the advanced materials sector, particularly companies poised to benefit from growth in latest energy vehicles, IT infrastructure, and telecommunications.
The Rise of Heat-Shrinkable Materials
Shenzhen Woer, established in 1998 and already listed on the Shenzhen Stock Exchange since 2007, is a global leader in heat-shrinkable materials, holding approximately 20.6% of the worldwide market share. These materials are critical components in a diverse range of applications. From protecting sensitive electronics to ensuring the reliability of high-speed copper cables, their importance is often unseen but essential.
The company’s product portfolio extends beyond traditional applications. In 2024, Shenzhen Woer ranked fifth globally in telecom cable manufacturing and is the second largest, and China’s largest, high-speed copper cable manufacturer by global revenue. They also produce materials vital for new energy vehicle power transmission, power grids, power stations, and rail transportation, positioning them at the forefront of several key growth industries.
O’Melveny’s Role and Sector Expertise
O’Melveny’s representation of Shenzhen Woer highlights the firm’s growing expertise in guiding companies through complex listing processes. This transaction marks the firm’s fourth in the new energy and advanced material sector within the past year, following successful IPOs and listings for Drinda New Energy, Shuangdeng Group, and CNGR Advanced Material. The legal team was led by partners Ke Zhu, Vincent Wang, and Ke Geng.
Future Trends in Advanced Materials
The success of Shenzhen Woer’s listing, alongside O’Melveny’s involvement in multiple similar transactions, points to several key trends shaping the future of the advanced materials industry:
- Demand from the EV Sector: The rapid growth of the electric vehicle market is driving demand for advanced materials used in battery technology, power electronics, and thermal management systems.
- 5G and Infrastructure Development: The rollout of 5G networks and the expansion of IT infrastructure require high-performance cables and materials capable of supporting increased data transmission speeds.
- Focus on Sustainability: Companies are increasingly seeking materials that are lightweight, durable, and environmentally friendly, leading to innovation in bio-based and recyclable materials.
- Geopolitical Considerations: Supply chain resilience and national security concerns are driving a trend towards regionalization and diversification of material sourcing.
Pro Tip: Investors looking to capitalize on these trends should focus on companies with strong research and development capabilities, established supply chains, and a commitment to sustainability.
The Importance of Dual Listings (A+H Listings)
Shenzhen Woer’s listing follows a pattern of “A+H” listings, meaning the company is already listed on a mainland Chinese exchange (Shenzhen Stock Exchange) and is now seeking a listing on the Hong Kong Stock Exchange. This strategy allows companies to tap into a broader investor base and enhance their global visibility.
CNGR Advanced Material, also represented by O’Melveny, completed a similar A+H listing in November 2025, raising approximately US$450 million.
FAQ
- What are heat-shrinkable materials? Heat-shrinkable materials are plastics that shrink when heated, providing a tight, protective covering for various components.
- Why is Shenzhen Woer a significant company? Shenzhen Woer is a global leader in its industry, holding the largest market share worldwide and serving key sectors like telecommunications and new energy.
- What role did O’Melveny play in the listing? O’Melveny advised Shenzhen Woer on both Hong Kong, and U.S. Laws throughout the listing process.
Did you grasp? The heat-shrinkable tubing protecting the cables in your home electronics likely relies on similar materials and manufacturing processes as those used in advanced industrial applications.
Explore more about O’Melveny’s operate in the advanced materials sector at www.omm.com.
