Kingboard subsidiary sells US$1.5B stake to boost PCB capacity amid AI boom

Kingboard Holdings has decided to sell 155 million shares of its subsidiary, Kingboard Laminates, at a price of HK$76 per share, which is expected to generate around US$1.5 billion. This transaction reflects an 11.5% discount compared to the closing price of HK$85.90 from Tuesday and is set to finalize on June 22. The shares being sold represent roughly 4.92% of the expanded share capital. The funds raised will be utilized to enhance production capacity for printed circuit boards (PCBs) in response to increasing demand caused by AI server backlogs and supply chain issues. According to Morgan Stanley, five major hyperscalers—Alphabet, Amazon.com, Meta Platforms, Microsoft, and Oracle—are projected to invest a total of US$805 billion in AI infrastructure by 2026.