Intel Capital, AsiaVest to make partial exits from China's Montage via US IPO

Montage is on course to raise up to $99.4 million, offering 7.1 million shares at $12-14 apiece. It was originally targeting up to $115 million.

According to a regulatory filing, Intel Capital will sell 265.6 million shares, reducing its stake from 10% to 7%, which includes the dilution created by the issuance of new shares. AsiaVest is exiting just over one million shares, taking its holding from 19.2% to 11.5%.

AsiaVest Opportunities Fund IV, Intel Capital, Shanghai Hua Hong, Silicon Federation and a number of individual investors committed $10.5 million for a 20% stake in Montage in June 2006, AVCJ Research's records show.

Montage produces analog and mixed-signal semiconductor solutions for the home entertainment and cloud computing markets. Its products are often used in set-top boxes, optimizing broadcast signal processing, and in memory-intensive server applications. Since it was founded in 2004, the company has sold more than 230 million integrated circuits to over 150 customers worldwide.

Revenue reached $78.2 million in 2012, up from $29.1 million in 2010, representing a compound annual growth of 64%. Montage posted a net income of $18.3 million in 2012, turning around a net loss of $8.5 million in 2010.

Montage will become the second VC-backed Chinese company to list in the US this year. The first came in June when Beijing-based online retailer LightInTheBox, which is backed by Ceyuan Ventures, GSR Venture and Trustbridge Ventures, raised $79 million.

A total of 15 Chinese companies went public in the US in 2011 but this fell to just two last year - discount clothing website Vipshop and Guangzhou-based social networking platform YY.

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• Topics
• Exits
• Greater China
• Technology
• Venture
• North America
• NASDAQ
• IPO
• China
• Intel Capital
• AsiaVest Partners, TCW/YFY
• Exit
• TMT