As 1 mainland Chinese chip IPO soars, another stumbles in busy Hong Kong week
Two mainland Chinese chip suppliers made sharply divergent trading debuts in Hong Kong on Tuesday after raising a combined HK$2.2 billion (US$280 million), underscoring investors’ selective appetite for semiconductor stocks despite a pickup in new listings. Suzhou Denglin Technology, the week’s largest listing, fell by as much as 8.6 per cent in morning trade after raising HK$1.4 billion in its…
Two mainland Chinese chip suppliers experienced contrasting trading performances in Hong Kong on Tuesday, following their combined HK$2.2 billion ($280 million) initial public offerings. Suzhou Denglin Technology, the week's most prominent listing, experienced a 8.6% drop in morning trade after raising HK$1.4 billion. The graphics processing unit manufacturer priced its shares at HK$231, the lowest point in its offered range, and saw 3,809 subscriptions, 1.11 times oversubscribed in the retail offering, while the international offering was 0.34 times oversubscribed.
Conversely, Jiangsu Xinde Semiconductor Technology saw strong gains, opening 20% above its offer price, reaching as high as 42% in the morning hours. Priced at HK$8.88, slightly below the midpoint of its indicated range, the company's retail tranche was 8.84 times oversubscribed, with the international offering being 0.13 times oversubscribed.
Amid a broader slump among recently listed semiconductor firms in Hong Kong, with several experiencing double-digit declines since going public, these contrasting debuts underscore investors' selective appetite for semiconductor stocks. Despite this week's flurry of listings, overseas demand remained subdued, with both chipmakers' international tranches only marginally oversubscribed.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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