Prime Highlight:
- Montage Technology’s strong debut highlights solid investor confidence in Chinese semiconductor stocks despite geopolitical and technology sector challenges.
- The listing reflects renewed momentum for Chinese AI and chip firms turning to Hong Kong to access global capital markets.
Key Facts:
- Shares jumped as much as 57% to HK$171 from the offer price of HK$106.89, after the company raised about US$902 million.
- The Hong Kong public tranche was subscribed over 700 times, while the international tranche was nearly 38 times covered.
Background:
Shares of Chinese chip designer Montage Technology surged more than 50% in their Hong Kong trading debut on Monday, highlighting strong investor appetite for Chinese semiconductor stocks despite ongoing geopolitical and technology sector challenges.
The stock jumped as much as 57% after listing, rising to HK$171 from its offer price of HK$106.89, which was set at the top end of the indicated range. As of late trading, the shares were still up more than 50%, reflecting sustained buying interest following the initial listing.
Montage Technology raised about $902 million through the share sale, making it one of the larger technology listings in Hong Kong this year. The strong debut places the company among a growing number of Chinese artificial intelligence and semiconductor firms turning to capital markets to fund growth and expansion.
Investor demand for the offering was particularly strong. The Hong Kong public tranche was subscribed to more than 700 times, while the international portion of the deal was nearly 38 times covered. High demand shows that both retail and institutional investors are confident, even though Chinese chipmakers face export controls and closer scrutiny from Western governments.
The listing follows recent market debuts by GigaDevice Semiconductor and OmniVision Integrated Circuits, suggesting renewed momentum for Chinese technology listings in the city. Analysts say Hong Kong continues to attract mainland firms seeking global capital and broader investor exposure.
Montage Technology is already listed on the mainland Chinese stock market and has a market capitalisation of around $27 billion, according to LSEG data. The company designs memory interface chips used in servers, data centres and artificial intelligence applications.
The strong performance of Montage’s shares may encourage more Chinese semiconductor companies to pursue listings, despite a challenging global environment for the sector.