Undervalued data center shovel seller? Report: Montage Technology's Hong Kong IPO receives cornerstone investment from top institutions such as Alibaba and Morgan Asset Management.

According to reports, Chinese chip design company Montage Technology has secured heavyweight cornerstone investors including Alibaba and JPMorgan Asset Management, indicating strong market demand for this AI-related stock offering.

According to media citing people familiar with the matter, Alibaba and JPMorgan’s asset management division will participate as cornerstone investors in this offering, committing to hold shares for a certain period in exchange for guaranteed allocation. The company plans to raise about $900 million through the IPO, and if underwriters exercise the over-allotment option, the fundraising amount could be higher. Montage Technology could be listed as early as this month.

Other cornerstone investors in this deal include Scottish asset management company Aberdeen Group Plc, South Korea’s Mirae Asset Securities Co., and UBS Asset Management division. Reportedly, Montage Technology will begin accepting investor subscriptions as early as Friday.

Montage Technology was founded in 2004 and focuses on designing chips to accelerate data flow in data centers and AI accelerators. The company is currently valued at around $22 billion, and its stock posted a 73% gain last year.

Strong Earnings Expectation, Hong Kong IPO Market Rebounds

According to analysts surveyed by Bloomberg, Montage Technology has a clear earnings growth path, supporting its high valuation. The company is expected to achieve a profit of 1.4 billion yuan (approximately $196 million) in 2024. Analysts predict that, with continued demand for AI infrastructure, this key financial metric could rise to 2.3 billion yuan in 2025, and further grow to 3.3 billion yuan in 2026.

The listing of Montage Technology will further boost Hong Kong’s record-breaking IPO market performance in January. Bloomberg compiled data shows that, driven by fundraising demand from Chinese AI-related companies, the Hong Kong market raised $4.3 billion in the first two weeks of 2026.

As Hong Kong’s IPO market sees a strong recovery, enthusiasm among prominent investment institutions for participating as cornerstone investors is also rebounding. Earlier this month, Alibaba and Mirae Asset also participated as cornerstone investors in MiniMax’s initial public offering.

Currently, relevant reviews are still ongoing and deal details may change. Representatives of Aberdeen and UBS declined to comment on the news. Montage Technology, Alibaba, JPMorgan, and Mirae Asset did not immediately respond to requests for comment.

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