Victory Giant surges 60% on Hong Kong debut after raising $2.6 billion in largest IPO this year

Nvidia Supplier Victory Giant Set for Debut After Biggest Hong Kong Listing This Year

The share sale has kicked off what bankers hope to become a procession of heavyweight deals, with Victory Giant joining a wave of Chinese listings in the artificial intelligence space. Victory Giant Technology Huizhou Co., a Chinese supplier of Nvidia Corp., is set to begin trading in Hong Kong on Tuesday after raising $2.6 billion in the city's largest listing in seven months. The company sold shares at the maximum price of HK$209.88 each and attracted thirty-seven cornerstone investors -- which get guaranteed allocation in exchange for holding the shares for at least six months -- buying about $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 $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 space, a popular trade again against the backdrop of volatile Middle East situation. The company makes printed circuit boards, 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. Founded in 2006 by Chen Tao, the Guangzhou-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 ($2.8 billion) last year, with analysts polled by Bloomberg forecasting a 70% jump in 2026. "This IPO could be an attractive value growth opportunity, provided there are no further export controls from the US side," said Gerald Gan, chief investment officer at 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." The shares of Delton Technology Guangzhou Inc., another Chinese maker of circuit boards, have gained 109% since their Hong Kong debut a month ago. Citigroup analysts led by Karen Huang maintains 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 datacenter switches and ASICs. The listing price represents a discount of about 47% to Victory Giant's closing price on Monday in Shenzhen, where they closed at 343 yuan. The fervor for AI has driven the stock up more than fourfold over the past year. Double-listed firms typically trade at a discount in Hong Kong to their onshore prices. Victory Giant said it plans to use proceeds from the listing to expand production capacity on the mainland. JPMorgan Chase, China Securities International and GF Securities are joint sponsors of the offering.

Chinese AI circuit board maker soars on Hong Kong debut

Hong Kong (AFP) - Shares in a Chinese tech firm that supplies US chip titan Nvidia soared almost 60 percent on its Hong Kong debut Tuesday, having raised more than US$2 billion in the city's largest listing this year. Victory Giant Technology Huizhou has said it will use most of the proceeds to expand production in mainland China. It comes as the country races to boost domestic production of the microchips used to train and power generative AI tools, in a bid to rival the United States' prowess in the sector. Shares in the Guangdong-based firm rocketed 59.6 percent in early trade to HK$335 (US$43), having set its price at HK$209.88 and raising HK$17.3 billion (US$2.2 billion). Victory Giant, whose shares are already listed across the border in Shenzhen, makes high-end printed circuit boards (PCBs), a crucial component of AI servers. One of its key customers is Nvidia, now the world's most valuable company thanks to feverish global demand for AI chips. The initial public offering (IPO) is the biggest since Zijin Gold International raised US$3.7 billion in September. It is also the latest in a recent run of blockbuster debuts from Chinese AI-related companies in Hong Kong, indicating optimism for China's ambitions in the sector. Nvidia's most cutting-edge AI chips cannot be sold in China under US export rules that Washington says are to protect national security. So Beijing is accelerating efforts to develop its own advanced semiconductors and break away from reliance on US hardware. "China continues to prioritise AI infrastructure, advanced manufacturing, and semiconductor-adjacent supply chains as strategic sectors," Dilin Wu, research strategist at Pepperstone, told AFP. So "companies like Victory Giant benefit from both policy support and financing accessibility", she said. While there is "sustained demand" for high-end PCBs owing to booming investment into AI servers and data centres worldwide, high prices may not last, Wu cautioned. "The current cycle is still characterised by tight supply in high-end PCB manufacturing," she said. "Whether this persists will depend on how quickly global and domestic capacity catches up with AI-driven demand growth." This year has already brought strong Hong Kong IPOs from leading Chinese AI startups Zhipu AI and MiniMax, as well as graphics processing unit maker Shanghai Biren Technology and chip firm OmniVision Integrated Circuit Group.

Victory Giant Shares Surge in Hong Kong's Largest IPO Debut This Year

Victory Giant Technology's shares surged on their Hong Kong trading debut after the Nvidia supplier raised $2.6 billion in the city's largest listing this year. The Chinese printed-circuit board maker's shares surged 53% to HK$317.00 in early Tuesday trading from their listing price of HK$209.88. Victory Giant raised 20.12 billion Hong Kong dollars, or US$2.57 billion, by issuing 95.85 million shares. The listing marks the largest in Hong Kong since Zijin Gold International's HK$25 billion IPO last September. Victory Giant, which was already listed in Shenzhen, specializes in designing and manufacturing high-end PCBs for artificial intelligence, servers and automotive electronics. The company plans to use the majority of its proceeds to expand production in mainland China. Last year, the company's Shenzhen-listed shares surged more than 580% and it reported strong growth in profit and revenue, driven by robust demand from AI computing-related applications. Victory Giant's products are widely used in computers, aerospace, automotive electronics and consumer electronics. The company joins a wave of AI suppliers tapping the Hong Kong market for fresh funds in recent months, including large language model developers MiniMax and Zhipu AI, as well as chip makers Montage Technology and Shanghai Biren Technology. Victory Giant's cornerstone investors include Morgan Stanley & Co. International, China CITIC Bank subsidiary CNCB Investment and Jack Ma-backed Yunfeng Capital.