Two Chinese chip firms list in Hong Kong on the same day with split debuts: Denglin slips, Xinde jumps 20%

Two Chinese chip firms listed on the Hong Kong Stock Exchange on the same day, November 10, raising a combined HK$2.36 billion (about $301 million), but their first-day performances diverged sharply: AI chip designer Suzhou Denglin Technology (9917) opened at HK$229, 0.9% below its HK$231 offer price, while semiconductor packaging and testing firm Jiangsu Xinde Semiconductor Technology (7672) opened at HK$10.70, 20.5% above its HK$8.88 offer price. Both belong to the same chip-and-AI theme, yet the market's reception was hot for one and cold for the other. (Photo: file photo of the Hong Kong Stock Exchange. Photo: Storm Asia.)

Denglin: priced at the bottom of the range, still slipped

Denglin designs general-purpose graphics processing units (GPUs) for AI computing, built on its own Minsky architecture and a software stack it calls Hamming. The company priced its IPO at HK$231 a share, the very bottom of its HK$231–288 marketed range, raising HK$1.41 billion (about $180 million). Demand looked thin: the Hong Kong public offering was 2.11 times subscribed and the international tranche 1.34 times covered; the shares later traded at HK$222.40. Denglin listed under Hong Kong's Chapter 18C regime, which allows pre-commercial specialist technology companies to list; the company is still loss-making. Revenue rose 107% to $23.6 million in 2025, then reached $27.6 million in the four months to April 30, 2026, up from $797,500 a year earlier. Five cornerstone investors took 45.68% of the offer shares, and the free float is only about 5.47% of issued capital.

Xinde: retail demand pushed it 20% higher

Xinde is an outsourced assembly and test (OSAT) provider that handles packaging and testing for fabless chip clients. It priced its IPO at HK$8.88 a share, raising HK$946.3 million (about $112 million), and the shares later rose to HK$12.02. Unlike Denglin, Xinde's Hong Kong public offer was 9.84 times subscribed, while the international tranche drew 1.13 times. Xinde is also loss-making: revenue for fiscal 2025 grew 22.3% to $138.9 million, but it posted a gross loss margin of 18% and a net loss of $66.4 million, driven by depreciation and fixed costs as capacity ramps.

A test as Hong Kong's IPO market cools

The two listings were seen as a test of demand for new Hong Kong listings. According to Bloomberg data, Hong Kong IPOs have raised $51.9 billion this year, closing in on the 2010 record of $57.8 billion; but only three IPOs were completed in October, several October debuts fell below their offer prices, and some deals were postponed. Analysts read the split debut as a sign that investors are becoming selective even within the same "chips plus AI" story: Xinde, with hot retail demand and tighter early supply, was chased higher, while Denglin, with a rich price and thin demand, came under pressure.