AI chip supplier Axera trades flat in Hong Kong debut as investor frenzy cools

Chinese artificial intelligence system-on-chip (SoC) supplier Axera Semiconductor traded flat on its debut in Hong Kong on Tuesday, in contrast to the spectacular gains by some mainland Chinese chip companies in their initial public offerings in recent weeks.

Shares of the Zhejiang province-based firm opened at HK$28.20 apiece, the same as the offer price. The company issued 100 million shares, raising HK$2.96 billion (US$378.7 million). Axera attracted HK$22.34 billion from retail investors during the bookbuilding period, marking an oversubscription of 74.4 times.

In the grey market on Monday evening, Axera slid over 4 per cent across major brokerage markets such as Futu, Bright Smart Securities & Commodities and Phillip Securities.

In comparison, Montage Technology, a designer of high-speed interconnect chips for data centres, jumped 64 per cent on its debut in Hong Kong on Monday. The firm, dual-listed in Shanghai, raised HK$7 billion.

Mainland chip designer GigaDevice Semiconductor rose more than 37 per cent on its first trading day on January 13.

Axera specialises in designing AI perception and edge computing chips for applications such as smart vehicles. It operates on the so-called fabless model, whereby it outsources the manufacture of wafers to independent foundries.