Montage Technology shares surged 64% in their Hong Kong debut on Monday, closing at HK$175 after pricing at HK$106.89. The Chinese memory interconnect chip designer raised HK$7.04 billion ($902 million) in its initial public offering.
The stock opened at HK$168 and climbed to HK$176 during trading before settling at HK$175. Retail investors oversubscribed the offering more than 700 times, while the international tranche attracted 37 times coverage.
Montage makes data center memory interface chips that accelerate data movement between processors and memory in artificial intelligence networks. The Shanghai-based company holds a 36.8% global market share in memory interconnect chips, according to its prospectus.
Founded in 2004, Montage specializes in infrastructure chips for high-performance computing, data centers, and AI applications.
The company reported revenue growth of 58% to 4.1 billion yuan in the nine months ended September 30, 2025, with net profit jumping 64% to 1.6 billion yuan.
Seventeen cornerstone investors committed $450 million to the offering, including JPMorgan Asset Management, UBS Asset Management, and Yunfeng Capital. CICC, Morgan Stanley, and UBS served as joint sponsors.
The listing adds to a wave of Chinese semiconductor IPOs hitting Hong Kong markets. GigaDevice Semiconductor and OmniVision Integrated Circuits debuted in January, while Biren Technology, MetaX, Moore Threads, and Shanghai Iluvatar CoreX Semiconductor have also recently listed.
Montage's strong debut signals renewed institutional interest in Chinese AI-related offerings, according to Winston Ma, an adjunct professor at NYU School of Law.
"The strong lineup of global cornerstone buyers suggests that Chinese AI-related IPOs are attracting institutional investors back to the HKEX market again," Ma said, even as some Wall Street analysts question whether AI investments have entered bubble territory.
The company plans to use IPO proceeds for research and development, commercialization, strategic investments, acquisitions, and working capital. Montage is already listed on China's mainland exchange with a market capitalization around $27 billion.
Hong Kong logged its strongest start to a year since 2021, with IPOs and second listings raising about $5.5 billion in January. Upcoming debuts include Axera Semiconductor and industrial automation equipment maker Wuxi Lead Intelligent Equipment.
Montage's listing comes as Beijing accelerates self-sufficiency efforts in advanced chips amid US sanctions limiting access to Nvidia's most powerful processors. China approved a first batch of Nvidia H200 chip imports for ByteDance, Alibaba, Tencent, and DeepSeek in late January under specific conditions.
