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Chip designer GigaDevice jumps 37% in Hong Kong debut amid China’s self-reliance drive

GigaDevice shares surge as investors chase Beijing’s self-sufficiency theme, with retail demand oversubscribed more than 540 times

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Zhu Yiming, right, chairman of GigaDevice Semiconductor, and Hu Hong, deputy general manager, at the firm’s trading debut on the Hong Kong stock exchange. Photo: Handout
Themis QiandAileen Chuang
Mainland chip designer GigaDevice Semiconductor jumped more than 37 per cent on its first trading day in Hong Kong on Tuesday, as the Beijing-based firm’s debut catered to investor appetite for tech companies amid China’s push for self-reliance.

The firm’s shares surged 45 per cent to HK$235 at the start of trading, versus the offer price of HK$162, before ending the day up 37.5 per cent at HK$222.80. The close valued the company at around HK$155.2 billion (US$19.9 billion). Its Shanghai-listed shares closed up 0.6 per cent at 263.50 yuan on Tuesday.

GigaDevice’s listing raised HK$4.68 billion (US$600 million) as the company issued 28.9 million shares. Retail investors subscribed for 542 times the number of shares allocated to them, committing HK$468 million in the offering, after borrowing HK$193.7 billion in margin financing from brokers. The institutional tranche saw an oversubscription rate of around 18 times.

Chinese chip companies have drawn market attention since Beijing vowed to find domestic alternatives to advanced US products amid trade tensions and the intensifying race in artificial intelligence. In December, graphics processing unit (GPU) start-ups Moore Threads Technology and MetaX Integrated Circuits surged more than 400 per cent and nearly 700 per cent, respectively, in their Shanghai debuts.
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