Chinese semiconductor company Nexchip is looking to raise as much as HK$6.98 billion, equivalent to approximately $890.26 million, through a stock offering in Hong Kong, according to an exchange filing released Tuesday.
The chip maker plans to offer 216.2 million shares at a maximum price of HK$32.30 per share, with trading of H shares expected to kick off on July 10, the filing indicated.
Nexchip’s fundraising effort comes amid a surge of Chinese technology companies turning to Hong Kong’s thriving capital markets. On the same day, Apple supplier Luxshare Precision Industry announced its own share sale of up to $3.10 billion. Meanwhile, Kunlunxin, a unit connected to Baidu focused on artificial intelligence, is reportedly planning a Hong Kong IPO with a target valuation of $50 billion, according to a report published Sunday by the Information.
The company intends to put roughly 53.6% of the money raised toward research and development, as well as improvements to its 22 nm technology platform. A portion of the proceeds is also earmarked for production projects tied to artificial intelligence technology.
Despite the fundraising push, Nexchip’s filing noted that the company anticipates its net profit for 2026 will come in lower than the previous year, largely because of expected depreciation costs associated with a new production facility.
Among the cornerstone investors — large-scale buyers who commit to purchasing shares ahead of a company’s listing — is a unit of Chinese automotive company Chery Automobile, according to the prospectus.
