Victory Giant surges 50% in debut after biggest Hong Kong listing this year

[HONG KONG] Victory Giant Technology Huizhou, a Chinese supplier of Nvidia, surged 50 per cent in its Hong Kong trading debut after raising US$2.6 billion in the city’s largest listing in seven months.

The shares rose to close at HK$315.00 on Tuesday (Apr 21), 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 per cent in grey-market trading before the debut.

The share sale, Hong Kong’s biggest since Zijin Gold International’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 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 “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 International, and asset managers Hillhouse Investment and South Korea’s Mirae Asset Securities.

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 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 (S$3.6 billion) last year, with analysts polled by Bloomberg forecasting a 70 per cent jump in 2026.

Robust orders

Victory Giant joined a growing list of top AI suppliers that expressed confidence in continued AI demand. Last week, Taiwan Semiconductor Manufacturing and equipment supplier ASML Holding 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.

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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 South-east 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 per cent 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, 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.”

Victory Giant’s debut extends a string of strong first-day performances by Chinese technology shares in Hong Kong. Last week, Sigenergy Technology, which makes energy storage equipment, jumped 103 per cent in its debut, while robotics software unicorn Manycore Tech surged 187 per cent. The shares of Delton Technology Guangzhou, another Chinese maker of circuit boards, have gained about 110 per cent 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 datacentre switches and ASICs.

The listing price had a discount of about 47 per cent 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 per cent. 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. BLOOMBERG