Chinese chip firms Denglin, Xinde open mixed in Hong Kong debuts

Chinese chip firms Suzhou Denglin Technology (9917) and Jiangsu Xinde Semiconductor Technology (7672) made mixed Hong Kong trading debuts on Tuesday after raising a combined HK$2.36 billion in initial public offerings.

• AI chip designer Denglin opened at HK$229, 0.9 percent below its offer price of HK$231, and was last trading at HK$222.40. Semiconductor packaging firm Xinde opened 20.5 percent above its offer price of HK$8.88 at HK$10.70 and was last at HK$12.02
• Hong Kong's Hang Seng Index rose 0.4 percent, while the Hang Seng Tech Index was up 0.8 percent
• Denglin raised HK$1.41 billion after pricing its offering at the bottom of the marketed range. Its retail tranche was 2.11 times subscribed, while the international tranche was 1.34 times covered
• It makes graphics processing units (GPUs), chips used in artificial intelligence computing. It plans to spend most of the IPO proceeds to upgrade its existing GPU products and develop new products and software tools
• Xinde raised HK$946.3 million by selling 106.56 million shares at HK$8.88 each, near the bottom of its HK$8.60 to HK$9.60 range. Its retail tranche was 9.84 times subscribed and the international offering was 1.13 times covered
• Xinde provides chip packaging and testing services. It plans to use most of the proceeds to expand production capacity and develop advanced packaging technology

Reuters

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