On January 14, Bloomberg reported that chip design company Montage Technology is about to be listed in Hong Kong, China, and has introduced Alibaba, J.P. Morgan Asset Management and other companies as cornerstone investors. This shows that the market has high hopes for this latest AI-related stock issuance transaction.
Montage Technology will be listed on the Hong Kong Stock Exchange
According to people familiar with the matter, Alibaba and JPMorgan Asset Management will participate in Montage Technology's stock issuance in Hong Kong as cornerstone investors. Cornerstone investors receive a guaranteed allotment of shares but require a commitment to hold the shares for a certain period of time. Other cornerstone investors in Montage Technology's Hong Kong listing include Scotland-based asset manager Aberdeen Group, South Korea's Mirae Asset Securities and the asset management arm of UBS Group AG.
People familiar with the matter said that Montage Technology may raise approximately US$900 million through the Hong Kong listing. The company's financing could be larger if the underwriters exercise their so-called over-allotment option. The specific details of the transaction are still subject to change as relevant negotiations are still ongoing.
Montage Technology's shares have been listed on the Shanghai Stock Exchange and are expected to begin accepting subscriptions from investors as early as this Friday, and may complete listing in Hong Kong as soon as this month.
As of press time, Aberdeen Group and UBS declined to comment. Montage Technology, Alibaba, J.P. Morgan Asset Management and Mirae Asset have yet to comment.