Montage Technology plans up to $1 billion Hong Kong share sale in January, sources say

By Yantoultra Ngui and Kane Wu

HONG KONG, Jan 8 (Reuters) - Chinese semiconductor decorator Montage Technology plans a 2nd listing successful Hong Kong via a $800 cardinal to $1 cardinal stock offering ​as soon arsenic this month, said 2 radical with cognition of the matter, adding to ‌the hectic gait of fundraising successful the city.

If the institution meets the $1 cardinal target, the woody would beryllium the largest ‌in Hong Kong since China's Zijin Gold International's $3.53 cardinal listing successful September, LSEG information showed.

The timetable isn't finalised but the listing volition apt instrumentality spot connected January 26, said 1 of the people, who person declined to beryllium named arsenic the accusation is not public.

Montage Technology, which cleared its Hong Kong banal speech proceeding ⁠on Monday, did not instantly respond ‌to a petition for comment.

Artificial Intelligence and spot IPOs person surged successful caller weeks successful some Hong Kong and mainland China, arsenic Beijing pushes to fortify ‍its home capabilities and trim reliance connected U.S. technology.

Huawei's AI server spin-off xFusion has hired Citic Securities successful mentation for a mainland IPO, portion representation chipmaker ChangXin Memory Technologies and Baidu's AI spot limb Kunlunxin are readying listings ​too, Reuters has reported.

On Thursday, 3 Chinese exertion firms made beardown Hong Kong debuts aft raising ‌a combined $1.19 billion. They included AI institution Zhipu AI, oregon Knowledge Atlas Technology, that OpenAI flagged arsenic a fast-rising rival.

Founded successful 2004, Montage Technology designs fabless integrated circuits, which are utilized to velocity information travel betwixt chips successful servers and information centres.

It raised $71 cardinal successful a Nasdaq IPO successful September 2013 but was taken backstage a twelvemonth aboriginal by state-owned Shanghai Pudong Science and Technology Investment Co.

It relisted connected ⁠Shanghai's STAR Market successful 2019 and present boasts a ​market headdress of astir $22 billion. Its shares person astir doubled ​in worth implicit the past year, LSEG information shows.

Citing consulting steadfast Frost & Sullivan, a draught prospectus filed with the Hong Kong speech showed Montage held a 36.8% stock ‍of the planetary representation interconnect ⁠chip marketplace successful 2024.

Revenue accrued 59% from 2023 to 2024, to 3.64 cardinal yuan ($521.27 million), with a nett net of 1.34 cardinal yuan and a gross borderline supra 58%, according to ⁠the prospectus.

The institution plans to usage proceeds from the listing to boost probe and improvement successful interconnect chips, put successful ‌marketing and prosecute strategical investments.

($1 = 6.9829 Chinese yuan renminbi)

(Reporting by Yantoultra Ngui successful Singapore and ‌Kane Wu successful Hong Kong; Editing by Sumeet Chatterjee)