Altech Digital Co., Ltd. IPO - Plain English Investor Guide

Hey there! Thinking about Altech Digital’s IPO but tired of Wall Street jargon? Here’s your no-nonsense breakdown:

1. What does Altech Digital do?

They’re like a custom tailor for business software, building made-to-order systems for banks, property developers, and financial companies. Example: A bank needs a unique app to handle complex trades – Altech designs it from scratch.

• Key detail: Legally based in the Cayman Islands but operates through a Hong Kong subsidiary.

2. How do they make money?

Two main ways:

1. Custom software projects ($1.5M revenue in 2025 vs. $0.4M in 2024)
2. Tech support & consulting ($2.0M in 2025 vs. $1.2M in 2024)

• Growth alert: Software revenue exploded by 275% in one year.
• But heads up: Most clients are in finance/real estate – great for expertise, risky if those industries slump.

3. What’s the IPO cash for?

• 50%: Develop new tools (including AI projects). The company didn’t provide specifics about their AI plans in the filing.
• 25%: Pay off debt
• 15%: Expand sales and marketing
• 10%: Emergency fund

4. Big risks to watch

• Hong Kong focus: 90% of business is there – local economic trouble = trouble for Altech.
• Client risk: 20% of revenue comes from one client.
• Big competitors: They’re up against IBM, Google, and other tech giants.

5. Why investors are excited

Hong Kong’s IT market is on fire:

• Grew from $2.14B (2019) → $3.45B (2024)
• Expected to hit $5.19B by 2029
• Gov’t pushing fintech = more demand for Altech’s services

6. How they stand out

• Vs. big companies: They make custom solutions (like a tailored suit) vs. competitors’ off-the-rack tools.
• Vs. small firms: They handle complex projects (like multinational banking systems) that startups can’t.

7. IPO basics

• Shares available: 10 million
• Price range: $20–$24 per share
• Total raised: ~$220 million (mid-range estimate)

Bottom line:

Altech’s growing fast in Hong Kong’s booming tech scene, but they’re tightly tied to local finance clients. If you’re optimistic about Asian fintech and can handle geographic risk, it’s interesting. Never invest money you can’t afford to lose!

P.S. This isn’t financial advice. When in doubt, talk to a financial advisor! 😊

Note: Altech shared limited details about long-term plans. Always research before investing.