Silex Microsystems AB made a spectacular debut on Nasdaq Stockholm, with shares surging nearly 160% from their IPO price—the strongest opening for a sizable European IPO in almost five years. The microchip-maker raised approximately 2 billion Swedish kronor ($220 million). Cornerstone investors bought roughly three-quarters of the shares. Trading was halted after shares climbed to 210 kronor from 81 kronor.

Silex operates the world's leading facility for manufacturing micro-electro-mechanical systems, or MEMS—components that combine mechanical elements with semiconductor circuitry. These chips power mobile phone accelerometers for motion tracking and screen orientation, and steer lasers for lidar systems in autonomous vehicles. Chinese shareholder Sai MicroElectronics Inc will retain about a 9.9% stake after the offering.

The listing serves as a test for European IPO markets, which have slowed amid geopolitical tensions and investor caution around AI disruption. Joakim Bornold of Levler noted there's red-hot appetite for chipmakers when the investment case is strong enough. Silex plans to use proceeds to expand in the US by acquiring a manufacturing facility, though its Chinese ownership could pose a risk to those plans. ABG Sundal Collier, SEB and Nordea arranged the offering.