(April 21): Victory Giant Technology Huizhou Co, a Chinese supplier of Nvidia Corp, surged 50% in its Hong Kong trading debut on Tuesday after raising US$2.6 billion ($3.3 billion) in the city’s largest listing in seven months.
The shares rose to close at HK$315.00 ($51.16) on Tuesday, compared with a listing price of HK$209.88 each. The listing priced at the maximum and attracted thirty-seven cornerstone investors — which get guaranteed allocation in exchange for holding the shares for at least six months — buying about US$997 million worth of stock. The stock jumped 74% in gray-market trading before the debut.
The share sale, Hong Kong’s biggest since Zijin Gold International Co’s US$3.7 billion offering in September, has kicked off what bankers in the city hope to become a procession of heavyweight deals. Victory Giant joins a wave of Chinese listings in the artificial intelligence (AI) space, a popular trade again against the backdrop of volatile Middle East situation. The company makes printed circuit boards (PCBs), which form the intricate electronic backbone of AI servers.
“It’s not just about investors buying into China’s hard tech, it all comes down to fundamentals,” said Kenny Ng, a strategist at China Everbright Securities International Co. “Thanks to the AI boom, demand and growth for PCBs are incredibly strong right now, which directly boosts the valuation. Ultimately, it’s the huge upside of the AI hardware sector that’s really driving the price.”
Cornerstone investors included Chinese billionaire Jack Ma-backed Yunfeng Capital, Morgan Stanley & Co International plc, and asset managers Hillhouse Investment and South Korea’s Mirae Asset Securities Co.
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The listing also attracted Chinese and global investors including China Investment Corp and Norges Bank Investment Management, the world’s largest sovereign fund, as well as BlackRock Inc and Fidelity Investments, people familiar with the matter have said.
Founded in 2006 by Chen Tao, the Huizhou-based company is seen as a leader in high-density interconnect and multi-layer PCBs that are crucial for AI chips. The company posted revenue of 19.3 billion yuan (US$2.8 billion or $3.6 billion) last year, with analysts polled by Bloomberg forecasting a 70% jump in 2026.
Robust orders
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Victory Giant joined a growing list of top AI suppliers that expressed confidence in continued AI demand. Last week, Taiwan Semiconductor Manufacturing Co (TSMC) and equipment supplier ASML Holding NV both raised their 2026 sales outlook due to red-hot demand for AI chips.
“Orders are coming in extremely robust,” Chen said in an interview.
Roughly three quarters of the funds raised from the Hong Kong listing will be used to expand capacity in China, while the rest to be spend in Southeast Asian expansions to meet clients’ request, Chen said in a Bloomberg TV interview.
Victory Giant plans to add US$30 billion in capacity over the next three years, including an additional US$10 billion worth of products to be manufactured in Thailand, Vietnam and Malaysia, Chen said. North American customers account for 70% of Victory Giant’s revenue, he said.
“This IPO could be an attractive value growth opportunity, provided there are no further export controls from the US side,” said Gerald Gan, the chief investment officer of Reed Capital Partners. The company can use the proceeds “to grow its market share in the ASICs market, though it needs to compete with existing suppliers from Taiwan and Japan.”
Victory Giant’s debut extends a string of strong first-day performances by Chinese technology shares in Hong Kong. Last week, Sigenergy Technology Co, which makes energy storage equipment, jumped 103% in its debut, while robotics software unicorn Manycore Tech Inc surged 187%. The shares of Delton Technology Guangzhou Inc, another Chinese maker of circuit boards, have gained about 110% since their Hong Kong debut a month ago.
Citigroup analysts led by Karen Huang maintain a buy recommendation for Victory Giant, valuing the Shenzhen‑listed shares at 20 times 2027 earnings, with price target of 415 yuan, citing robust growth driven by AI‑related PCB demand, upside to average selling prices, and potential opportunities in data centre switches and ASICs.
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The listing price had a discount of about 47% to Victory Giant’s closing price on Monday in Shenzhen, where they closed at 343 yuan. Tuesday’s debut quickly narrowed that to about 17%. The fervour for AI has driven the Shenzhen stock up nearly fourfold over the past year. Double-listed firms typically trade at a discount in Hong Kong to their onshore prices.
JPMorgan Chase, China Securities International and GF Securities are joint sponsors of the offering.
Uploaded by Tham Yek Lee
