Key Takeaways:
Montage Technology (SHA: 688008) shareholder Shanghai Rongying Enterprise Management Partnership has sold 12.228 million A-shares, cashing out approximately RMB 3.06 billion ($486 million) in a placement that saw heavy institutional demand. The sale represents 1% of the memory interface chip company's total share capital.
The shares were placed through a bookbuilding process with a preliminary price of RMB 250.08 per share. A total of 25 institutional investors, including fund managers, qualified foreign investors, and securities firms, participated in the offering. With valid subscriptions reaching 29.05 million shares, the placement was oversubscribed by approximately 2.4 times, indicating strong investor appetite. A total of 20 institutional investors were ultimately identified as transferees.
The sale comes amid a broader trend of significant sell-offs by major shareholders in China's surging semiconductor sector. On the same day as Montage's announcement, six other Chinese chip and AI-related firms unveiled share reduction plans, including Advanced Micro-Fabrication Equipment Inc. (AMEC) and ASR Microelectronics. Montage's stock had hit an all-time high just a day prior to the sell-off announcements.
This transaction utilized an inquiry-transfer method, which is limited to professional institutional investors and bypasses retail investors. Shares acquired this way are subject to a six-month lock-up period, a mechanism designed to prevent short-term dumping and reduce immediate downward pressure on the stock price.
This article is for informational purposes only and does not constitute investment advice.
