Firms steer Montage Technology’s HKD7bn Hong Kong IPO
Montage Technology, a leading provider of data processing and interconnect chips, listed on the HKEX on 9 February, raising HKD7.04 billion (USD901 million). The IPO marked the company’s completion of an A+H dual listing structure, following its 2019 debut on the SSE Star Market. Davis Polk, Grandall Law Firm, Clifford Chance and DeHeng Law Offices provided legal support.
Frost & Sullivan said Montage was the world’s largest supplier of memory interconnect chips by revenue in 2024, with a 36.8% market share. The global market for such chips was forecast to grow from USD1.2 billion in 2024 to USD5 billion by 2030.
The offering comprised 65.89 million H shares priced at HKD106.89 each. On its first day of trading, the shares opened at HKD168, representing a 57.2% premium above the issue price, with the company’s market capitalisation exceeding HKD200 billion. Cornerstone investors included Morgan Stanley Investment Management, UBS Asset Management, Alibaba’s subsidiary Alisoft China and Huaqin Technology’s subsidiary Huaqin Telecom.
Davis Polk acted as Hong Kong and US counsel to Montage, led by partners Li Ran, He Li and Jason Xu. Grandall Law Firm advised on PRC law, led by Shanghai managing partner Ni Junji, with support from partners Yue Yongping, Chen Xiaochun and Chen Jingyu.
Clifford Chance advised the joint sponsors – CICC, Morgan Stanley and UBS – as well as the other underwriters on Hong Kong and US law. The team was co-led by chair of the China practice and partner Tim Wang, alongside partners Jean Thio and Virginia Lee, with counsel Liang Wei and Haoze Zheng providing support. DeHeng Law Offices advised the underwriters on PRC law, led by partner Shen Hongshan and supported by partners Zhu Liang and Wu Xiaoxia.
The prospectus states that the proceeds will primarily be used for R&D in interconnect chips, as well as for strategic investments and acquisitions.
Founded in 2004 and headquartered in Shanghai, Montage Technology specialises in designing chips that accelerate data flows between data centres and AI accelerators. Its core business includes interconnect chips and its proprietary Jintide product line. Its shareholders include China Electronics Corporation, Intel and Samsung.
