VC-backed Montage raises $71m in US IPO, closes up on first day trading
Montage Technology Group, a China-based semiconductor manufacturer backed by AsiaVest Partners and Intel Capital, saw its stock jump 28% to close at $12.80 on its first day of trading on NASDAQ. It is the second PE-invested Chinese company to go public in the US this year.
Montage's IPO raised $71 million after pricing at $10 per share - below the indicative range of $12-14. The company set its IPO terms in September, planning to sell 7.1 million shares to raise up to $99.4 million. It was originally targeting up to $115 million.
Intel Capital and AsiaVest Partners made partial exits from the company thought its IPO.
Intel Capital sold 265.6 million shares, reducing its stake from 10% to 7%, which included the dilution created by the issuance of new shares. AsiaVest exited 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.
In June, Beijing-based online retailer LightInTheBox became the first Chinese company to go public in the US this year. The company, 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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