Shares of Sigenergy Technology Co, a Chinese maker of energy storage equipment, jumped in their Hong Kong trading debut on Thursday after the company raised HK$4.4 billion ($562 million) in an initial public offering, a sign of investor demand in an industry swept up in a frenzied rally.

The shares closed at HK$659.50, up 103 percent from their IPO price of HK$324.20 each.

The listing attracted more than a dozen cornerstone investors — which get guaranteed allocation in exchange for holding the shares for a period of time — including a Temasek unit, Goldman Sachs Assets Management and Hillhouse Group, which together subscribed for roughly half of the offering.

The stocks jumped more than 100 percent in gray-market trading before the debut.

Sigenergy, headed by a former executive at Huawei Technologies Co, is riding strong investor appetite for energy‑storage stocks, fueled by surging electricity demand from AI development and reinforced by CATL’s Hong Kong listing last year.

That enthusiasm has been further amplified by recent energy disruptions linked to the war in Iran.

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Shares of Chinese energy‑storage companies have rallied in the past year, led by CATL, whose mainland and Hong Kong listed shares have surged 89 percent and 149 percent, respectively, alongside gains for peers Rept Battero Energy Co and CALB Group Co Ltd.

The industry is buoyed by rising demand for batteries and storage systems, with some manufacturers also expecting a near-term profit boost from energy price volatility linked to tensions involving Iran.

Founded in 2022, Shanghai-based Sigenergy provides stackable all-in-one distributed energy storage systems for overseas markets, with products integrating core components such as inverters and battery packs.

After a net loss in 2023, the company swung back to profitability in 2024 and increased net income more than thirty times last year. Global energy storage system shipments grew more than 100 percent a year in 2020–2024 and are expected to sustain a 21 percent annual growth rate through 2030, according to the consultancy Frost & Sullivan.

The proceeds will be used for research and development, equipment upgrade, strengthening marketing and after-sale service. Joint sponsors are CITIC Securities and BNP Paribas.