Montage Technology Co., a leading Chinese semiconductor firm listed on Shanghai’s STAR Market, is preparing for a landmark initial public offering (IPO) in Hong Kong worth approximately US$1 billion. The company has appointed China International Capital Corp (CICC), Morgan Stanley, and UBS as joint global coordinators to lead the offering, according to sources familiar with the matter.
This high-profile IPO signals Hong Kong’s revitalization as a favored listing destination for mainland tech companies amid ongoing geopolitical and regulatory headwinds in U.S. markets. Proceeds from the listing are expected to support Montage’s continued expansion in chip manufacturing and AI-related R&D.
Strategic Capital Raise on Hong Kong’s Exchange
Bloomberg reports that Montage Technology, a leading Chinese semiconductor design company, is moving ahead with plans for a Hong Kong initial public offering that could raise close to $1 billion, according to sources familiar with the matter. The Shanghai-listed firm has enlisted China International Capital Corp. (CICC), Morgan Stanley, and UBS Group AG to assist with the proposed share sale.
These individuals, who requested anonymity as the plans are not yet public, indicated that discussions are still in progress and final decisions could change.
Montage publicly announced on Friday its intention to seek a listing in Hong Kong but stopped short of disclosing further details about the timeline or structure of the offering. The choice of CICC, Morgan Stanley, and UBS reflects strong cross‑border investor appetite.
A representative for UBS declined to comment, while Montage, CICC, and Morgan Stanley did not immediately respond to requests for details. Bloomberg similarly reported that Montage is actively working with the trio on its Hong Kong float.
Policy, Not Just Profit, Drives Listing
The company, which debuted on Shanghai’s Star Market in 2019, currently has a market capitalization of about 93 billion yuan (approximately $13 billion). Unlike many traditional IPOs aimed at monetizing private equity or boosting liquidity, Montage’s decision carries strategic significance. The company is one of several Chinese firms being subtly nudged by authorities to list abroad, particularly in Hong Kong, as Beijing promotes the “offshore gateway” model for tech leaders
Montage’s move reflects a broader trend among mainland Chinese firms. As access to domestic capital markets becomes more challenging, many companies are turning to Hong Kong’s exchange to secure fresh funding. These cross-border listings, often with regulatory backing, now make up a significant portion of the city’s IPO pipeline and have contributed to a rebound in listing activity in one of Asia’s key financial hubs.
The planned offering also unfolds as geopolitical tensions shape the global semiconductor landscape. The United States has tightened restrictions on China’s chip sector, aiming to slow Beijing’s efforts to advance its domestic semiconductor production capabilities. This includes export controls on critical manufacturing equipment and technology for cutting-edge electronic components.
Conclusion
Montage Technology’s planned Hong Kong IPO, expected to raise about $1 billion, reflects the company’s ambition to expand while highlighting a broader trend of Chinese firms turning to Hong Kong amid tighter regulatory scrutiny abroad. Backed by major global banks and growing interest in semiconductor innovation, the listing will test market appetite and regulatory sentiment in the second half of 2025.
A successful deal could open the door for more high-profile tech offerings and further cement Hong Kong’s role as a key hub for cross-border capital.
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