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China’s Montage Technology shares surged more than 50% in their Hong Kong trading debut on Monday after a highly oversubscribed share sale that raised HK$7.04 billion for Chinese memory interconnect chipmaker.
The shares opened trading at HK$168, rising to an intraday high of HK$171 before settling at about HK$160. Montage Technology reported a turnover of HK$2.32 billion on roughly 14.75 million shares, among the most actively traded stocks by Monday morning.
Montage Technology IPO boosts Hong Kong AI chip market
Montage Technology manufactures data center memory interface chips that facilitate faster data transfer between memory and processors in artificial intelligence computer networks.
The China-based company offered 65.9 million shares in Hong Kong at a maximum offer price of HK$106.89 per share.
According to its prospectus, the funds raised will be utilized for operating capital, strategic investments or acquisitions, and commercialization in addition to R&D.
The company’s release of the allocation results on Friday revealed that the foreign tranche was more than 37 times oversubscribed, and the retail portion of the offering was more than 700 times oversubscribed.
The offering included 17 cornerstone investors, such as UBS Asset Management, Yunfeng Capital, and JPMorgan Asset Management. These investors contributed approximately $450 million to the offering.
Winston Ma, an adjunct professor at NYU School of Law and former head of North America for CIC, China’s sovereign wealth fund, stated that the strong lineup of global cornerstone buyers suggests that Chinese AI-related IPOs are attracting institutional investors back to the HKEX market again. He also explained that the U.S sanctions that restricted China’s access to advanced chips like those made by Nvidia were speeding up regulatory and financial backing for China’s domestic semiconductor value chain, which included “middleware” chip designers like Montage.
Ma further stated that Montage’s Hong Kong debut highlighted how China’s AI chip ecosystem is progressing “up the stack” from basic components to specialized chips that link processors and memory in data centers.
Montage Technology’s listing also comes as Hong Kong recorded its strongest start to the year since 2021. IPOs and second listings raised roughly $5.5 billion in January, the biggest since 2021 when IPOs raised $7.6 billion.
Hong Kong reclaims top IPO spot as listings surge
The Hong Kong Exchanges and Clearing (HKEX) said in its annual report that Hong Kong was the world’s leading IPO (initial public offering) destination in 2025, with fundraising levels significantly higher than the previous year. HKEX announced that the number of new listings in 2025 reached over 100.
According to statistics, the number of new listings increased by 52 percent to 93 in the first 11 months of 2025 from 61 in the same time period the previous year. Initial public offerings raised HK$259.4 billion (about $33.33 billion), a 228 percent increase over the HK$79.1 billion raised the previous year.
The total fundraising amounted HK$575 billion, a 240 percent increase over the HK$169 billion raised during the same time last year.
China Daily Hong Kong reported that IPO issuers are also becoming more diverse as the bourse accepted listings from businesses based in Kazakhstan, Singapore, Thailand, and the United Arab Emirates last year.
The report said that since the HKEX established the Technology Enterprises Channel in collaboration with the Securities and Futures Commission, it has strengthened its support for innovative listings. The report cited that 88 biotech and specialist technology companies are listed on the Hong Kong Stock Exchange following the implementation of Chapters 18A and 18C of the listing rules.
Against this backdrop of expanding issuer diversity and regulatory support, PwC said the region’s initial public offering (IPO) market is anticipated to continue growing in 2026, with funds predicted to reach $320 billion to $350 billion. The projection came after a strong 2025 performance of $285.8 billion in funds raised across 119 IPOs.
PwC also noted that new-economy enterprises, retail, consumer goods, services, IT, and biotech were the main drivers of IPO growth in 2025, with 55 firms raising $1 billion or more.
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