Hong Kong’s IPO market showed fresh signs of revival after Chinese chip designer Montage Technology surged on its trading debut
Hong Kong’s long-subdued initial public offering (IPO) market showed fresh signs of revival after Chinese chip designer Montage Technology surged on its trading debut, underscoring improving investor appetite for technology and semiconductor-linked listings in the financial hub.
Shares of Montage rose about 64 per cent above their offer price, closing at HK$175 after pricing at HK$106.89. The company raised approximately HK$7.04 billion (around US$900 million) through the offering.
Montage, already listed on Shanghai’s STAR Market, designs memory interconnect chips used in data centres and artificial intelligence (AI) infrastructure—a segment seen as strategically important as China accelerates efforts to strengthen domestic semiconductor capabilities.
Heavy investor demand
According to the company’s prospectus filings, the Hong Kong public tranche was oversubscribed more than 700 times, while the international offering was covered multiple times over, reflecting strong institutional participation.
The deal included 17 cornerstone investors, among them global asset managers such as JPMorgan Asset Management and UBS Asset Management, which committed significant capital to the float, as disclosed in listing documents.
The sharp debut gains highlight renewed interest in companies positioned to benefit from AI-driven infrastructure spending and China’s broader push for technological self-reliance.
Broader recovery under way
Montage’s listing comes after a prolonged lull in Hong Kong’s primary market. The city’s IPO pipeline had slowed markedly following Beijing’s regulatory tightening on technology firms beginning in 2021, compounded by rising global interest rates and weaker risk appetite that curbed large equity issuances.
Recent months, however, have seen a pickup in activity, particularly in sectors aligned with national strategic priorities such as semiconductors, advanced manufacturing and artificial intelligence. Bankers and market participants say improving sentiment and stabilising valuations have encouraged companies to revisit listing plans in the city.
Large deals back on the radar
Investors are also watching potential blockbuster offerings that could further reinforce the recovery narrative.
Syngenta Group, the Swiss agrichemicals company majority-owned by Chinese state-owned Sinochem, is considering a Hong Kong IPO that could raise between $5 billion and $10 billion, Reuters reported, citing sources with knowledge of the plans. If completed, it would rank among the city’s largest listings in recent years.
While overall fundraising volumes remain below the peaks seen earlier in the decade, Montage Technology’s strong debut suggests that investor confidence is gradually returning—offering cautious optimism that Hong Kong’s IPO window may be reopening for strategic growth sectors.
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