Chipmaker Xinde raises $112M in Hong Kong IPO as retail piles in
What's the deal? Jiangsu Xinde Semiconductor Technology priced its Hong Kong IPO at US$1.07 per share, raising net proceeds of about US$106.6M (roughly $112 million). The chip packaging and testing firm offered 107 million H shares and is set to begin trading on the Hong Kong Stock Exchange on November 10, with an estimated market capitalisation near US$1.17B.
Why now? Xinde is an outsourced assembly and test (OSAT) provider that handles packaging and testing for fabless chip clients. It has poured roughly US$558.3M into capital spending since its 2020 founding, and the listing funds expansion: 69.5% goes to production facilities and lines, 17.6% to advanced-packaging research and development.
The split: Demand diverged sharply between investor groups. The Hong Kong public offer was 9.84 times subscribed, while the international tranche drew just 1.13 times — a sign retail enthusiasm outran institutional conviction.
What could go wrong? Xinde remains loss-making. FY2025 revenue grew 22.3% to US$138.9M, but it posted a gross loss margin of 18% and a net loss of US$66.4M, driven by depreciation and fixed costs as capacity ramps. Cornerstone investors, including GF Fund Management, committed about US$37.8M with a nine-month lock-up.
The signal: The oversubscription lands against a cooling Hong Kong IPO market, where several October debuts fell below their offer price and some deals were postponed. Hard-tech and semiconductor issuers remain a major fundraising source, but sector interest has not guaranteed strong aftermarket performance — and a subscription multiple alone says little about how Xinde trades once the bell rings.
Read more: finance.biggo.com
Image credit: wolf.arthur
