Cloud computing chip designer Montage Technology Co. Ltd. (6809.HK; 688008.SH) launched its Hong Kong IPO on Friday, targeting HK$6.9 billion ($884 million) in fundraising by selling about 65.9 million shares for HK$106.89 each. The listing follows a trend that has seen a growing number of companies traded on China’s domestic markets in Shanghai and Shenzhen make second listings on Hong Kong’s more internationally focused stock exchange.
Applications for shares will close on Feb. 4, with the stock scheduled to make its trading debut on Feb. 9. Seventeen cornerstone investors, including several with ties to internet giant Alibaba, have agreed to purchase $450 million worth of shares, or about half the total being sold.
Montage’s revenue rose 58% to 4.06 billion yuan in the first nine months of last year from 2.57 billion yuan in the year-ago period. Its profit over that time rose 67% to 1.63 billion yuan in the first nine months of last year from 978 million yuan a year earlier.
By Doug Young
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