According to people close to the transaction, Alibaba Group Holding Ltd. and JPMorgan Chase & Co.'s asset management division are expected to join as cornerstone backers for Dongshan Precision's Hong Kong offering. The people, who requested anonymity due to the private nature of the discussions, added that CPE, formerly Citic PE, and Montage Technology Co. are preparing to take part.
Spokespeople for Dongshan Precision and for JPMorgan Asset Management would not provide comment. Alibaba, CPE and Montage did not immediately respond to requests for comment.
Dongshan Precision is planning to open order books as early as Tuesday for an offering that could total as much as $1.8 billion when including an overallotment option, the people said. Cornerstone allocations are expected to account for about half of the transaction. Deliberations are ongoing, and the lineup, size and timetable may change.
A preliminary prospectus lists UBS Group AG, Guotai Haitong Securities Co., GF Securities Co. and Citic Securities Co. as joint sponsors on the Hong Kong deal.
Dongshan's move rides a record-strength summer for Hong Kong listings, with the market on pace to surpass 2021's full-year haul from equity raises, helped by large deals from companies tied to the AI supply network. Additional PCB manufacturers have already tapped the market this year: Victory Giant Technology Huizhou Co. raised $3 billion in one of the city's biggest offerings of 2025, and Shenzhen Kinwong Electronic Co. staged an initial offering of $650 million last month.
But investors have grown more cautious about the scale of AI spending and how it is being funded as yields rise. Earlier this month, US semiconductor stocks endured an eight-day slump, the longest since 2008, erasing about 16% from the group's benchmark, while the Nasdaq 100 had its roughest week since April 2025.
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That mood has started to hit IPOs. Australian data center operator Firmus Grid Ltd. scrapped its roughly $5 billion listing after pushback on valuation, and AirTrunk postponed a planned Singapore REIT IPO to next year.
Dongshan is already listed in Shenzhen and has fallen by over 50% from a June high, resulting in a market value of 224 billion yuan, or $33.5 billion. The Suzhou-based company builds printed circuit boards and optical transceivers, parts viewed as critical to AI infrastructure.
In plain English: a marquee cornerstone lineup could steady the book, but the deal is launching into a market testing the durability of the AI buildout. For investors, watch the final pricing, the cornerstone take-up, and how peer deals have traded in Hong Kong this year.
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