CXMT IPO Overview
Chinese memory‑chip manufacturer CXMT Corp. launched a historic Shanghai initial public offering that raised 66.6 billion yuan, equivalent to about $9.8 billion. The company sold 6.688 billion shares at a price of 8.66 yuan per share, representing the second‑largest domestic IPO in China after Agricultural Bank of China’s 2010 listing.
Retail investors drove demand, with the allocation to individual investors oversubscribed 212 times. Approximately 9.4 million orders were placed, amounting to a total order value of 7.07 trillion yuan. The IPO priced CXMT at roughly 580 billion yuan (around $80 billion) before trading began, which, if the shares posted a first‑day gain of about 330 percent, would lift its market capitalisation above Industrial and Commercial Bank of China’s 2.6 trillion yuan, making CXMT the largest listed company in mainland China.
Newly listed shares will not be subject to daily price limits for the first five trading sessions, allowing for a potentially sharp opening move. The offering valued CXMT at about 2.4 times its book value, representing a 56 percent discount to the average valuation of global DRAM producers such as SK Hynix, Micron Technology and Nanya Technology.
CXMT is currently the world’s fourth‑largest producer of dynamic random‑access memory (DRAM), a key component in smartphones, computers and artificial‑intelligence servers. The Hefei‑based firm is also developing high‑bandwidth memory, which is critical for AI data centres.
The listing provides investors with direct exposure to Beijing’s policy push to expand domestic semiconductor capacity and reduce reliance on foreign chip suppliers. CXMT could become eligible for the Stock Connect programme during the third‑quarter review in late August, with possible inclusion from mid‑September, thereby granting eligible Hong Kong investors broader access to its shares.
The strong debut is expected to bolster upcoming listings from other Chinese technology firms, including Yangtze Memory Technologies, Baidu’s Kunlunxin chip division and additional AI‑related companies. Recent AI‑focused IPOs have recorded sizable opening gains, exemplified by Semight Instruments’ 876 percent rise in April and Moore Threads’ 425 percent surge in December.