Kingboard Holdings is raising HK$11.77 billion (US$1.5 billion) by selling a stake in its listed subsidiary, Kingboard Laminates Holdings, one of the world's largest makers of laminate materials used in circuit boards. The move capitalizes on a buoyant stock market for AI hardware components.
The proceeds will fund business expansion and production capacity to meet surging demand from AI server manufacturers. This comes as AI server backlogs have hit record highs at major technology firms, pressuring suppliers to accelerate output.
Kingboard Laminates specializes in copper-clad laminates and other materials essential for printed circuit boards (PCBs), which are critical components in AI servers. The subsidiary's products are in high demand as data centers and AI infrastructure expand globally.
The stake sale signals confidence in sustained AI hardware demand, though some analysts warn of potential oversupply if growth slows. Investors will watch how quickly Kingboard can translate this capital into increased production.
The company did not disclose the exact stake percentage being sold or the valuation of the subsidiary. Market conditions will determine the final pricing of the offering.