- CXMT raised $9.8 billion in the second-largest initial public offering in China’s history, making it Asia's biggest IPO so far this year.
- On its debut, CXMT shares surged 470%, reaching a market cap of approximately 3.3 trillion yuan.
- CXMT was founded in 2016 by Chairman Zhu Yiming and aims to enhance its technological capabilities through the IPO proceeds.
- Apple has begun testing CXMT's DRAM for devices sold in China, indicating a significant partnership.
CXMT Corp., formerly known as ChangXin Memory Technologies, made a stunning debut on Shanghai's STAR Market, raising 66.6 billion yuan ($9.8 billion) in an IPO, the second-largest in China's history. The company sold 6.688 billion shares at 8.66 yuan each, leading to a remarkable 470% surge on its first trading day.125
The shares opened at over 49 yuan, pushing CXMT's market capitalization to approximately 3.3 trillion yuan, making it the most valuable company listed in China. Analysts attribute this impressive performance to a well-oversubscribed IPO and strong market sentiment, with valuation multiples indicating a potential market value significantly above the initial 580 billion yuan.34
The company, founded in 2016 by Chairman Zhu Yiming, aims to utilize the IPO proceeds for memory wafer mass production and R&D to enhance its technological capabilities. CXMT's recent financial performance has also been promising, swinging to an operating profit of 35.43 billion yuan in the first quarter, driven by rising global demand for computing power.
The CEO of Yiyi Capital, Theodore Shou, expressed confidence in CXMT's potential, stating, "I have no doubt the company is going to grow to be a global leader." He noted that the 470% performance on day one is notable for a company of this size, highlighting the limited free float and positive market sentiment as key factors in the surge.
Additionally, Apple has begun testing CXMT's DRAM for devices sold in China, further solidifying the company's position in the market.6
“CXMT's market capitalization surged to about 3.3 trillion yuan ($458 billion) on opening, making it China's most valuable listed company. The company, which holds a 7.67% share of the global DRAM market, has also been tested by Apple for use in devices sold in China.”
CNBC
