China’s Montage Technology lines up Alibaba, JPMorgan as cornerstone investors for HK listing, Bloomberg reports

Chinese chip designer Montage Technology, which passed its Hong Kong listing hearing earlier this month, plans to bring in Alibaba (9988) and JPMorgan Asset Management as cornerstone investors for its upcoming initial public offering, Bloomberg News reported, citing people familiar with the matter.

Alibaba and the asset management arm of JPMorgan are expected to participate as cornerstone investors, meaning they would be allocated shares ahead of the listing and agree to lock-up periods, the sources said. The Hong Kong IPO could raise about US$900 million (HK$7.02 billion), with proceeds potentially increasing if underwriters exercise an over-allotment option.

Other cornerstone investors are expected to include Aberdeen Investments, South Korea’s Mirae Asset Securities and UBS Asset Management, the people said.

Some of the sources said the company could begin taking investor orders as early as Friday, with the listing potentially taking place later this month, according to the report.