HONG KONG, February 3, 2026, 21:10 (HKT)
- Sources indicate the offer will hit the upper end of its marketed range, aiming to raise as much as HK$7.04 billion ($902 million)
- The prospectus shows the final price is due Feb. 5, with trading set to begin Feb. 9
- Cornerstone commitments total $450 million, with most of the funds earmarked for research and development
Montage plans to price its Hong Kong share sale at the top of its marketed range, potentially raising up to HK$7.04 billion ($902 million), according to two sources familiar with the matter. The offer price should be finalized by Feb. 5 and announced the following day, with shares scheduled to begin trading on the Hong Kong Stock Exchange on Feb. 9, per its prospectus. (Reuters)
The deal comes after a January surge that put Hong Kong back in the spotlight for major listings, although not all debuts have been spectacular. IPOs and secondary listings pulled in roughly $5.5 billion during the month—the strongest January since 2021, according to LSEG data. Kenny Ng, securities strategist at China Everbright Securities International, noted that investors have favored new-economy and tech stocks. “By contrast, shares from traditional sectors like Eastroc tend to show more steady patterns post-listing,” he said. (Reuters)
Chip and memory suppliers are increasingly turning to Hong Kong for offshore capital and an additional trading venue beyond the mainland, analysts note. “It signals a strategic move in how the sector fuels its global ambitions,” said MS Hwang, research director at Counterpoint Research. Frost & Sullivan estimates Montage will hold 38.6% of the memory interconnect chip market in 2024, while Bloomberg reported institutional orders were cut off a day early due to strong demand. (South China Morning Post)
Montage plans to sell 65.9 million H shares on the Hong Kong market, pricing them up to HK$106.89 each. That puts its valuation near HK$180.36 billion. At the highest price, this represents about a 48% discount compared to its Shanghai listing, based on the deal’s exchange rates. On Tuesday, its Shanghai shares rose 2.3% to 182.03 yuan, marking a 54% gain for the year and giving the company a market cap around $29.3 billion, according to LSEG data. The offering includes 17 cornerstone investors who have pledged $450 million ahead of the listing; among them are JPMorgan Asset Management, UBS Asset Management, and Yunfeng Capital. (MarketScreener UK)
The prospectus stated that the company intends to allocate the majority of the funds toward research and development, commercialization, strategic investments or acquisitions, and working capital. CICC, Morgan Stanley, and UBS are the joint sponsors managing the deal.
Montage, established in 2004, develops integrated circuits that accelerate data transfer in servers and data centres. The industry has seen significant investment as China pushes to create homegrown alternatives to advanced chips and manufacturing gear, following tighter US export controls.
Hong Kong’s memory and storage scene is heating up. GigaDevice Semiconductor made its debut there last month following its Shanghai listing. Axera Semiconductor is also slated to join the fray in the coming days, along with several other chipmakers.
Montage stated in its prospectus that the Hong Kong listing will bolster its global leadership and position it to capitalize on cloud computing and AI infrastructure opportunities. The move also hinges on sustained investor demand during pricing and the initial trading days.
The pricing isn’t set in stone and the window could close quickly. Even with major cornerstone demand, big deals can debut weak. Chip valuations still react sharply to changes in interest rates, demand, and geopolitical tensions.
