GigaDevice Soars 54% on Hong Kong IPO Debut Amid AI Demand
Overview
GigaDevice Semiconductor surged 54% on its Hong Kong listing, raising HK$4.68 billion ($600 million). The IPO, 542 times oversubscribed, highlights robust investor appetite for AI-related semiconductor firms amid memory chip shortages and growing demand. The Beijing-based company specializes in niche memory chips and microcontrollers.
GigaDevice Semiconductor Inc. shares surged 54% on its Hong Kong debut Tuesday, raising HK$4.68 billion ($600 million) and highlighting robust investor appetite for Chinese AI-related technology firms. The listing marks the city's second semiconductor IPO in as many days.
Data Highlights
The shares climbed to HK$248.80 from their IPO price of HK$162. The offering was an overwhelming 542 times oversubscribed, a strong indicator of demand. GigaDevice reported a profit of 588 million yuan in the first half of 2025, marking a 14% increase from the previous period.
Market Context
This performance occurs as memory chip prices rise due to global shortages. Manufacturers worldwide are scrambling to meet escalating demand driven by artificial intelligence applications. GigaDevice's debut aligns with Beijing's strategy to bolster domestic technology champions capable of competing with global leaders like Micron Technology Inc. and Nvidia Corp.
Niche Market Strength
The Beijing-based GigaDevice specializes in "niche memory chips." According to a filing, it ranks as the world's second-largest provider of NOR Flash memory for sectors including automotive, industrial automation, and networking. The company also supplies microcontrollers used in a broad array of products, from energy storage systems to consumer electronics.
Strategic IPO Pricing
The Hong Kong listing price was set at a discount of approximately 45% relative to its A-share price, which closed at 261.83 yuan on Monday. This valuation strategy likely played a role in the exceptional demand observed for the IPO.
