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Quick Summary
Montage Technology shares jumped up to 64%, closing 57% higher in their Hong Kong debut
US$902 million IPO marks the biggest opening-day gain in five years for deals of similar size
Rally highlights strong investor appetite for China AI and semiconductor stocks
Valuation gap with Shanghai listing fueled demand
What Happened
Shares of Montage Technology Co surged on their first day of trading in Hong Kong after the chip designer raised US$902 million in one of the city’s most eye-catching IPOs in recent years.
IPO price: HK$106.89 (top of the range)
Close: HK$175
Opening-day gain: ~57% (peaked at +64%)
The offering involved 65.9 million shares and was priced at a 44% discount to Montage’s Shanghai-listed shares, which closed at 170.90 yuan prior to the deal.
Why Investors Piled In
Strong AI momentum: Persistent demand for China AI-related stocks
Attractive valuation arbitrage between Hong Kong and Shanghai listings
Policy support for semiconductors and AI continues to underpin sentiment
According to Bosco Wu of Bank of East Asia, investor enthusiasm remains firm as recently listed AI firms have delivered solid post-IPO performance.
AI IPO Wave Continues
Montage’s blockbuster debut follows a string of strong listings:
GigaDevice Semiconductor Inc: +93% since January debut
Minimax Group Inc: +196% since listing
OmniVision Integrated Circuits Group Inc also debuted in January
Montage’s first day jump is the largest for a US$900m+ IPO since Kuaishou Technology’s 2021 mega listing.
Market Backdrop
Hang Seng Technology Index rose up to 2.1%, rebounding from last week’s sharp selloff
Tech stocks saw renewed buying after recent volatility
Analysts at Citigroup Inc described Montage as a rare China semiconductor play offering exposure to global data centre expansion.
Why Montage Matters
Montage designs chips that accelerate data flows within data centres, commanding over one-third of global market share by revenue, according to Frost & Sullivan.
Shanghai-listed valuation: ~US$29 billion
2025 net income: 2.15–2.35 billion yuan
2026 estimate: ~3.3 billion yuan
Bottom Line
Montage’s explosive debut confirms that China’s AI trade is very much alive.
Despite recent volatility, investors are still willing to pay up for high-quality semiconductor and data-centre exposure, especially when supported by policy tailwinds and strong earnings growth.
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