Kingboard Holdings plans to raise HK$11.77 billion ($1.5 billion USD) by selling a stake in its listed subsidiary, Kingboard Laminates Holdings. This move comes as the company aims to expand its business and production capacity to meet the surging demand for circuit board materials driven by the artificial intelligence (AI) boom. The proceeds will be used to invest in its printed circuit board business, accelerate research and development for product upgrades, repay existing bank loans, and for other corporate purposes.
The sale involves 155 million shares of Kingboard Laminates at a price of HK$76 per share, representing an 11.5% discount to Tuesday’s closing price of HK$85.90. These placed shares will account for approximately 4.92% of Kingboard Laminates' enlarged share capital. Following the transaction, Kingboard Holdings' shareholding in Kingboard Laminates will decrease from 66.62% to approximately 61.7%.
Major technology vendors, particularly the five hyperscalers (Alphabet, Amazon.com, Meta Platforms, Microsoft, and Oracle), are expected to spend a combined $805 billion on AI infrastructure in 2026, according to Morgan Stanley. This immense spending has led to record-high AI server backlogs and strains on the upstream circuit board material supply chain. Kingboard manufactures laminates, the base material for circuit boards, and PCBs, making it a critical supplier for AI servers and data centers. Kingboard's shares have surged nearly 300% in 2026, and after the announcement, its shares rose nearly 18% to HK$117.80, while Kingboard Laminates saw a 1.9% increase.
