Capitalizing on the AI hardware boom, Kingboard Holdings plans a major stake sale to increase the capacity of its circuit board laminate materials.

Riding on a buoyant stock market for artificial intelligence hardware components, Kingboard Holdings plans to raise HK$11.77 billion (US$1.5 billion) by selling a stake in its listed subsidiary, Kingboard Laminates Holdings, one of the world’s biggest makers of laminate materials used in circuit boards for AI servers. The company said the proceeds would be used to expand business and production capacity to meet surging demand. The fundraising comes as AI server backlogs hit record highs at major...