Ingenic launches IPO to join wave of mainland China chipmakers raising funds in Hong Kong

The semiconductor maker is set to raise a share offering in the city and begin trading later this month

Beijing-based Ingenic Semiconductor has launched a Hong Kong share offering to raise up to HK$3.22 billion (US$410.4 million), joining a growing wave of mainland Chinese chipmakers tapping the city’s capital markets to fund international expansion.

The company, which has been listed on Shenzhen’s Nasdaq-like ChiNext board since 2011, is offering 31.29 million H shares priced at up to HK$102.80 each, according to a filing on Monday. The shares were expected to start trading on August 25 under the stock code 3223, with Guotai Junan International serving as the sole sponsor.

Ingenic follows domestic peers, such as GigaDevice and Montage Technology, which have turned to Hong Kong to broaden their global investor base and support artificial intelligence- and automotive-driven growth.

Ingenic planned to deploy half of the proceeds into innovation and product development across its core memory, computing and analogue chip lines. Around 25 per cent would be allocated for strategic investments and acquisitions, while 15 per cent would be earmarked to expand its sales network and to promote products.

Founded in 2005, Ingenic operates on a fabless business model, designing chips for automotive electronics, industrial equipment, medical devices and smart security systems. It broadened its footprint in 2020 by acquiring Silicon Valley-based Integrated Silicon Solution Inc, bringing automotive-grade memory products into its portfolio.