The flurry of Chinese mainland technology-company listings in Hong Kong continues, with the city’s initial public offering (IPO) market buoyed by the strong pipeline of candidates, regulatory policy flexibility, and attractive valuation.
The Hong Kong Stock Exchange welcomed the second semiconductor-company listing after OmniVision Integrated Circuits, as GigaDevice Semiconductor closed at HK$222.8 ($28.5) per share, soaring 37.5 percent compared to its offering price of HK$162 apiece on Tuesday. The GigaDevice share price had once risen as much as 54 percent.
The company raised HK$4.68 billion in an offering that was 542 times subscribed.
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The launch of GigaDevice in Hong Kong coincides with the mainland’s push for chip self-sufficiency amid tensions with the United States. Last week, the stock exchange welcomed the listings of mainland major artificial intelligence large language model companies, including MiniMax Group and Knowledge Atlas Technology Joint Stock Company (Zhipu). Mainland chip manufacturers such as Iluvatar CoreX Semiconductor and Biren Technology are also rushing to list their shares in the city.
BrainCo, one of the so-called “Hangzhou Six” technology startups, has confidentially filed for an IPO in Hong Kong, Bloomberg reported. Founded in 2015, the Hangzhou-based unicorn specializes in non-invasive brain-computer interface technology.
Besides BrainCo, the “Hangzhou Six” refers to a group of high-profile startups that also includes DeepSeek, Unitree Robotics, Deep Robotics, Game Science and Manycore Tech.
Global fund manager Value Partners Group says Hong Kong will remain a critical “stepping stone” for mainland corporates to raise capital and go overseas.
“We remain constructive on the Hong Kong IPO and its positive spillover impact on financial markets, based on the strong pipeline of high-quality names to be listed, as well as the convenience of Hong Kong Exchanges and Clearing over United States and Chinese mainland onshore exchanges in terms of policy and flexibility,” the fund manager said.
READ MORE: OmniVision rises in Hong Kong debut after $616m offering
“The Hang Seng TECH Index’s valuation remains attractive at a 12-month forward price-to-earnings ratio of a multiple of 20, representing a 15 percent discount to its own historical average and a 31 percent discount to the US technology sector”, according to the global investment market outlook report filed by Standard Chartered Bank.
Driven by valuation re-rating and earnings growth, the bank expects the Hang Seng TECH Index will deliver positive performance.
The Hang Seng Index finished Tuesday trading with a 0.9-percent gain, rising 239 points to close at 26,848 on a turnover of HK$315.2 billion. The Hang Seng China Enterprises Index — a barometer of Chinese mainland companies — hiked 0.71 percent to close at 9,285 points, while the city’s technology stock gauge — the Hang Seng TECH Index — edged up 0.11 percent to close at 5,869 points.
