Chinese semiconductor designer Montage Technology is planning a second listing in Hong Kong through a share offering valued between $800 million and $1 billion as soon as this month, according to two people familiar with the matter, adding to the city’s recent flurry of fundraising activity.
If the company reaches the $1 billion target, the deal would be the largest in Hong Kong since China’s Zijin Gold International raised $3.53 billion in its September listing, LSEG data showed, News.Az reports, citing Reuters.
While the timetable is not yet finalised, one of the sources indicated the listing could occur on January 26. Both sources requested anonymity because the information has not been made public.
Montage Technology, which cleared its Hong Kong Stock Exchange hearing on Monday, did not immediately respond to a request for comment.
The surge in AI and chip-related IPOs has accelerated in recent weeks across Hong Kong and mainland China, as Beijing seeks to strengthen domestic capabilities and reduce reliance on U.S. technology. Huawei’s AI server spin-off xFusion has engaged Citic Securities in preparation for a mainland IPO, while memory chipmaker ChangXin Memory Technologies and Baidu’s AI chip unit Kunlunxin are also planning listings, Reuters has reports.
On Thursday, three Chinese technology firms made strong Hong Kong debuts after raising a combined $1.19 billion. They included AI company Zhipu AI, or Knowledge Atlas Technology, that OpenAI flagged as a fast-rising rival.
Founded in 2004, Montage Technology designs fabless integrated circuits, which are used to speed data flow between chips in servers and data centres.
It raised $71 million in a Nasdaq IPO in September 2013 but was taken private a year 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 almost doubled in value over the last year, LSEG data shows.
Citing consulting firm Frost & Sullivan, a draft prospectus filed with the Hong Kong exchange showed Montage held a 36.8% share of the global memory interconnect chip market in 2024.
Revenue increased 59% from 2023 to 2024, to 3.64 billion yuan ($521.27 million), with a net profit of 1.34 billion yuan and a gross margin above 58%, according to the prospectus.
The company plans to use proceeds from the listing to boost research and development in interconnect chips, invest in marketing and pursue strategic investments.