- CXMT Corp. raised $9.8 billion in its IPO, pricing 6.688 billion shares at 8.66 yuan each, marking the second-largest initial public offering in China’s history.
- Shares of CXMT began trading on Shanghai's STAR Market on Monday, surging 470% to over 49 yuan shortly after the opening.
- The surge in share price lifted CXMT's market capitalization to 3.3 trillion yuan (approximately $487.31 billion).
- CXMT has become the most valuable company listed in China, overtaking Industrial and Commercial Bank of China (ICBC).
- CXMT, formerly known as ChangXin Memory Technologies, raised 57.92 billion yuan ($8.6 billion) initially, with the potential to increase to 66.61 billion yuan if the overallotment option is fully utilized.
- Only 6.73% of CXMT's enlarged share capital will be freely tradable at listing, which could lead to significant price volatility.
- The IPO proceeds are primarily intended for memory wafer mass production and R&D projects to enhance CXMT's technological capabilities.
CXMT Corp., formerly ChangXin Memory Technologies, debuted on Shanghai's STAR Market after raising 66.6 billion yuan ($9.8 billion), marking the second-largest IPO in China's history.123467
Shares skyrocketed nearly 470% on their first day, opening at 49.50 yuan compared to the IPO price of 8.66 yuan, which propelled the company's market capitalization to 3.3 trillion yuan ($487.31 billion).5
This remarkable debut makes CXMT the most valuable company in China, surpassing the Industrial and Commercial Bank of China (ICBC).
Valuation multiples and a well-oversubscribed IPO indicated a strong debut, with only 6.73% of shares freely tradable, potentially leading to significant price volatility.8
HSBC Qianhai Securities noted that the offering could drain liquidity from the broader market, although past tech listings suggest a rebound may follow.
In its IPO prospectus, CXMT reported a 7.67% share of the global DRAM market and an operating profit of 35.43 billion yuan in Q1, up from a loss of 2.83 billion yuan a year earlier.
The company plans to utilize IPO proceeds for memory wafer mass production and R&D to enhance its technological capabilities.9
Theodore Shou, CEO at Yiyi Capital, expressed confidence in CXMT's potential, stating, "I have no doubt the company is going to grow to be a global leader... a global champion in this particular sector."
Additionally, CXMT has gained attention as Apple tests its DRAM for devices sold in China.
“CXMT's market cap surged to 3.3 trillion yuan ($487 billion) on debut in Asia's biggest IPO this year, overtaking ICBC as China's most valuable company. Theodore Shou of Yiyi Capital said the chipmaker will become a global champion, while CXMT aims to use IPO proceeds for memory wafer production and R&D, having held 7.67% of the global DRAM market in 2025.”
CNBC
