Chinese chip design company Montage Technology has reportedly secured heavyweight cornerstone investors, including Alibaba and JPMorgan Asset Management, a development that underscores strong market demand for this artificial intelligence-related stock offering. According to media reports citing informed sources, Alibaba and JPMorgan Asset Management's department will participate in the offering as cornerstone investors, committing to hold shares for a certain period in exchange for guaranteed allocation. The listing is planned to raise approximately $900 million, with the potential for a higher amount if underwriters exercise their over-allotment option. Montage Technology could list as early as this month. Other cornerstone investors for the deal also include Scottish asset manager Aberdeen Group Plc, Korea's Mirae Asset Securities Co., and the asset management division of UBS. It is reported that Montage Technology will begin taking investor subscriptions as early as Friday. Founded in 2004, Montage Technology specializes in designing chips that accelerate data flow within data centers and AI accelerators. The company currently holds a valuation of around $22 billion, and its shares recorded a 73% gain last year. With strong profit expectations, the Hong Kong IPO market is showing signs of a rebound. Analyst data from a Bloomberg survey indicates that Montage Technology has a clear path for profit growth, providing support for its high valuation. The company achieved a profit of 1.4 billion Chinese yuan (approximately $196 million) in 2024. Analysts anticipate that this key financial metric could rise to 2.3 billion yuan in 2025 and further increase to 3.3 billion yuan in 2026, driven by sustained demand for AI infrastructure construction. The listing of Montage Technology will further boost the Hong Kong new share market's record-breaking performance for January. Data compiled by Bloomberg shows that, propelled by financing demand from Chinese AI-related enterprises, the Hong Kong market has raised $4.3 billion in the first two weeks of 2026. As the Hong Kong IPO market experiences a robust recovery, enthusiasm from well-known investment institutions to participate as cornerstones is resurging. Earlier this month, Alibaba and Mirae Asset also acted as cornerstone investors in the initial public offering of MiniMax. Relevant deliberations are still ongoing, and details of the transaction are subject to change. Representatives from Aberdeen and UBS declined to comment on the aforementioned news. Montage Technology, Alibaba, JPMorgan, and Mirae Asset did not immediately respond to requests for comment.
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