By Yantoultra Ngui and Kane Wu
HONG KONG, Jan 8 (Reuters) – Chinese semiconductor designer Montage Technology plans a second itemizing in Hong Kong by way of a $800 million to $1 billion share providing as quickly as this month, mentioned two folks with information of the matter, including to the hectic tempo of fundraising in the town.
If the corporate meets the $1 billion goal, the deal could be the biggest in Hong Kong since China’s Zijin Gold International’s $3.53 billion itemizing in September, LSEG knowledge confirmed.
The timetable isn’t finalised however the itemizing will doubtless happen on January 26, mentioned one of many folks, who have declined to be named as the knowledge shouldn’t be public.
Montage Technology, which cleared its Hong Kong inventory alternate listening to on Monday, didn’t instantly reply to a request for remark.
Artificial Intelligence and chip IPOs have surged in current weeks in each Hong Kong and mainland China, as Beijing pushes to strengthen its home capabilities and cut back reliance on U.S. expertise.
Huawei’s AI server spin-off xFusion has employed Citic Securities in preparation for a mainland IPO, whereas reminiscence chipmaker ChangXin Memory Technologies and Baidu’s AI chip arm Kunlunxin are planning listings too, Reuters has reported.
On Thursday, three Chinese expertise corporations made sturdy Hong Kong debuts after elevating a mixed $1.19 billion. They included AI firm Zhipu AI, or Knowledge Atlas Technology, that OpenAI flagged as a fast-rising rival.
Founded in 2004, Montage Technology designs fabless built-in circuits, that are used to pace knowledge stream between chips in servers and knowledge centres.
It raised $71 million in a Nasdaq IPO in September 2013 however was taken personal a 12 months later by state-owned Shanghai Pudong Science and Technology Investment Co.
It relisted on Shanghai’s STAR Market in 2019 and now boasts a market cap of about $22 billion. Its shares have nearly doubled in worth over the past 12 months, LSEG knowledge reveals.
Citing consulting agency Frost & Sullivan, a draft prospectus filed with the Hong Kong alternate confirmed Montage held a 36.8% share of the worldwide reminiscence interconnect chip market in 2024.
Revenue elevated 59% from 2023 to 2024, to 3.64 billion yuan ($521.27 million), with a internet revenue of 1.34 billion yuan and a gross margin above 58%, in accordance to the prospectus.
The firm plans to use proceeds from the itemizing to enhance analysis and growth in interconnect chips, make investments in advertising and marketing and pursue strategic investments.
($1 = 6.9829 Chinese yuan renminbi)
(Reporting by Yantoultra Ngui in Singapore and Kane Wu in Hong Kong; Editing by Sumeet Chatterjee)