Nexchip Semiconductor priced its Hong Kong initial public offering at HK$32.30 per share, the top of its marketed range, selling 216.2 million shares to raise approximately HK$6.98 billion, or roughly $890 million. Shares in the Hefei-based wafer foundry were set to begin trading July 10, marking a secondary listing alongside the company's existing Shanghai shares.
Nexchip is China's third-largest chip foundry behind SMIC and Hua Hong Semiconductor, founded in 2015 as a joint venture between Hefei's government-owned investment arm and Taiwan's Powerchip Technology Corporation. The company plans to direct more than HK$3.5 billion of the proceeds toward research and development and its 22nm technology platform, with an additional HK$1.5 billion earmarked for AI-powered systems connecting laboratory research to factory production.
“What to watch next: Nexchip's first-day trading performance and whether Hong Kong's H2 2026 IPO pipeline can sustain the pace set in the first half of the year.”
The top-of-range pricing lands in the middle of Hong Kong's strongest IPO window in five years -- new listings in the city totaled about $22.45 billion in the first half of 2026, up 57% year-over-year, as mainland Chinese companies increasingly pursue dual listings to diversify their investor base and access offshore capital. Strong pre-listing demand for Nexchip suggests investors are treating the offering as a proxy bet on China's push for domestic chip self-sufficiency, alongside established plays like SMIC and Hua Hong.
The pricing at the top of the range also means less room for a traditional first-day pop, shifting the near-term story to whether investor interest holds once shares start trading. Nexchip has already disclosed that 2026 net profit is expected to decline from the prior year, driven by heavy depreciation costs tied to its new production facility -- a reminder that even a well-oversubscribed, state-backed listing in a hot IPO market isn't insulated from near-term earnings pressure. What to watch next: Nexchip's first-day trading performance and whether Hong Kong's H2 2026 IPO pipeline can sustain the pace set in the first half of the year.