The Chinese optical transceivers firm has started to gauge interest from investors, according to Bloomberg.
Deal expected to exceed Luxshare Precision's $3.1 billion share sale on July 6 to become the largest listing in Hong Kong this year, according to LSEG data.
News come as Hong Kong's IPO market reaches the strongest first-half result in five years.
Shares of China's Zhongji Innolight surged as much as 8% Monday before paring some gains, after the company received approval for a major Hong Kong listing worth up to $8 billion on Friday, in what is likely to be one of the city's biggest in years.
The deal size will exceed Luxshare Precision's $3.1 billion IPO earlier this month, making it the largest listing in Hong Kong this year.
Innolight didn't immediately respond to a request for comment.
Hong Kong is seeing a wave of listings from Chinese companies that are involved in the artificial intelligence supply chain.
Hong Kong's IPO market, which has raised HK$209.9 billion raised across 85 new listings, is the strongest first-half result in five years, according to a report by KPMG.
"Looking ahead, the market boasts a record-breaking pipeline of over 500 active IPO applicants (including confidential filings)," KPMG said, adding that tech companies will continue to be one of the main growth engines of the city's IPO market.
Zhongji Innolight shares last traded 4.7% higher.