Chinese chipmakers Denglin and Xinde make mixed Hong Kong market debuts
Chinese chipmakers Suzhou Denglin Technology and Jiangsu Xinde Semiconductor Technology made contrasting Hong Kong market debuts after raising a combined HK$2.36 billion through their IPOs. Denglin opened 0.9% below its offer price, while Xinde ga...
By Anupam Nagar, ETMarkets.com |
Agencies
Chinese chipmakers Denglin and Xinde make contrasting Hong Kong debuts.
Chinese chipmakers Suzhou Denglin Technology and Jiangsu Xinde Semiconductor Technology made mixed debuts on the Hong Kong stock exchange on Tuesday after raising a combined HK$2.36 billion ($301 million) through their initial public offerings (IPOs), Reuters reported.
Shares of artificial intelligence (AI) chip designer Denglin opened at HK$229, 0.9% below their IPO price of HK$231. The stock was last trading at HK$222.40. In contrast, shares of semiconductor packaging firm Xinde opened at HK$10.70, gaining 20.5% over their offer price of HK$8.88, and extended gains to trade at HK$12.02.
Read more: Global Market Today: Asian stocks rally after US tech surge, oil slump
The broader market remained positive, with the Hang Seng Index rising 0.4% and the Hang Seng Tech Index advancing 0.8%.
According to Reuters, Denglin raised HK$1.41 billion through its IPO after pricing the offering at the bottom of its marketed range. Its retail tranche was subscribed 2.11 times, while the international offering was subscribed 1.34 times.
The company develops graphics processing units (GPUs), which are used in AI computing. It plans to deploy most of the IPO proceeds towards upgrading its existing GPU products, developing new products and expanding its software tools.
Meanwhile, Xinde raised HK$946.3 million by selling 106.56 million shares at HK$8.88 apiece, near the lower end of its indicated price range of HK$8.60 to HK$9.60. According to Reuters, the company's retail tranche was subscribed 9.84 times, while its international offering was subscribed 1.13 times.
Read more: US stocks: Dow rockets 1,100 points, S&P over 2% as oil slide cools inflation worries; Nvidia slumps
Xinde provides semiconductor packaging and testing services, an increasingly important segment of the chip manufacturing ecosystem. The company intends to use most of the IPO proceeds to expand its production capacity and develop advanced packaging technologies.
The contrasting performances of the two listings came amid a positive session for Hong Kong equities, as investors continued to assess opportunities in China's semiconductor and AI industries.
(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)
Shares of artificial intelligence (AI) chip designer Denglin opened at HK$229, 0.9% below their IPO price of HK$231. The stock was last trading at HK$222.40. In contrast, shares of semiconductor packaging firm Xinde opened at HK$10.70, gaining 20.5% over their offer price of HK$8.88, and extended gains to trade at HK$12.02.
Read more: Global Market Today: Asian stocks rally after US tech surge, oil slump
The broader market remained positive, with the Hang Seng Index rising 0.4% and the Hang Seng Tech Index advancing 0.8%.
According to Reuters, Denglin raised HK$1.41 billion through its IPO after pricing the offering at the bottom of its marketed range. Its retail tranche was subscribed 2.11 times, while the international offering was subscribed 1.34 times.
The company develops graphics processing units (GPUs), which are used in AI computing. It plans to deploy most of the IPO proceeds towards upgrading its existing GPU products, developing new products and expanding its software tools.
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Meanwhile, Xinde raised HK$946.3 million by selling 106.56 million shares at HK$8.88 apiece, near the lower end of its indicated price range of HK$8.60 to HK$9.60. According to Reuters, the company's retail tranche was subscribed 9.84 times, while its international offering was subscribed 1.13 times.
Read more: US stocks: Dow rockets 1,100 points, S&P over 2% as oil slide cools inflation worries; Nvidia slumps
Xinde provides semiconductor packaging and testing services, an increasingly important segment of the chip manufacturing ecosystem. The company intends to use most of the IPO proceeds to expand its production capacity and develop advanced packaging technologies.
The contrasting performances of the two listings came amid a positive session for Hong Kong equities, as investors continued to assess opportunities in China's semiconductor and AI industries.
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(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)
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