{"slug": "china-chipmaker-cxmt-jumps-472-in-debut-after-us-9-8-billion-ipo", "title": "China chipmaker CXMT jumps 472% in debut after US$9.8 billion IPO", "summary": "CXMT, formerly ChangXin Memory Technologies, surged 472% in its Shanghai debut on Monday after raising 66.6 billion yuan (US$9.8 billion) in China's second-largest IPO ever. The world's fourth-largest DRAM maker is seen as Beijing's best hope to reduce reliance on foreign suppliers for high-bandwidth memory critical to AI data centers.", "body_md": "# China chipmaker CXMT jumps 472% in debut after US$9.8 billion IPO\n\nThe Chinese homegrown champion is tapping into the voracious appetite for the memory chip story\n\nCXMT’s shares rose 472 per cent when they began trading in Shanghai on Monday (Jul 27), after the chipmaker raised as much as 66.6 billion yuan (US$9.8 billion) in the second-largest initial public offering in China’s history.\n\nFormerly known as ChangXin Memory Technologies, the company sold 6.688 billion shares, before an overallotment option, at 8.66 yuan apiece via the IPO.\n\nChina’s homegrown champion is tapping into the voracious appetite for the memory chip story, a fulcrum of the global artificial intelligence buildout.\n\nAs the world’s fourth-largest maker of dynamic random-access memory, or DRAM – the chips that underpin everything from smartphones to AI servers – CXMT has emerged as Beijing’s best hope of reducing dependence on foreign suppliers in areas including high-bandwidth memory, a critical component for AI data centres.\n\nAmong onshore IPOs, the CXMT deal was surpassed only by Agricultural Bank of China’s US$10 billion share sale in 2010.\n\nThe sequence of sixes and eights – numbers traditionally associated with good fortune and prosperity in Chinese culture – is unlikely to be accidental, underscoring the significance of a listing that has become a symbol of the nation’s semiconductor ambitions.\n\nHefei, Anhui-based CXMT is buttressed by retail investor demand, attractive valuations, and renewed signs of state-backed support for markets.\n\nThe retail portion of the IPO was 212 times oversubscribed, with individual investors submitting 9.4 million orders for 7.07 trillion yuan worth of shares – about 10 times the retail order book of [SpaceX’s world record IPO](https://www.businesstimes.com.sg/international/global/spacex-ipo-raises-us75-billion-biggest-debut-all-time).\n\nOne reason behind the oversubscription rate is that regulators remain cautious about the valuations at which companies sell new shares to the public, requiring firms to have some comparison against peers in China and globally.\n\nAuthorities have been known to discourage richly priced IPOs in an attempt to protect individual investors from losses.\n\nWhen markets are buoyant, that can lead to companies getting smaller cash infusions than investors are willing to commit.\n\nSimilar circumstances produced some spectacular first-day performances as a wave of Chinese companies along the AI supply chain raised funds over the past year.\n\nSemight Instruments soared a record 876 per cent in April, surpassing the 693 per cent mark set by [MetaX Integrated Circuits Shanghai](https://www.businesstimes.com.sg/international/global/china-chipmaker-metax-jumps-755-after-wildly-oversubscribed-ipo) in December.\n\nIn a similarly watched debut, fellow chipmaker [Moore Threads Technology](https://www.businesstimes.com.sg/international/global/china-chipmaker-moore-threads-soars-502-after-eight-billion-yuan-ipo) jumped 425 per cent in December.\n\nValuation may provide further appeal for CXMT shares, with investors growing increasingly cautious over AI-inflated multiples.\n\nThe IPO price implies 2.4 times book value. That is a 56 per cent discount to the average price-to-book ratio for global DRAM peers SK Hynix, Micron Technology and Nanya Technology, according to Bloomberg Intelligence.\n\nIt represents an even steeper 77 per cent discount to the average for Chinese chipmakers Semiconductor Manufacturing International and Hua Hong Grace Semiconductor.\n\nTo be sure, semiconductor shares have been volatile in recent weeks as some investors grew concerned that the mega-listing would signal a peak in the AI-driven rally.\n\nBut many investors remain upbeat on CXMT’s long-term attractiveness, saying that buying forces may put a floor on the stock even if sentiment for chip names sours elsewhere.\n\n“Unlike some of the mega IPOs that came before it, CXMT hasn’t reached the limits of either its technology or its market share,” said Zeng Jiqing, a fund manager at Beijing Nuohua Investment Management. “There’s still enormous room for growth.”\n\nA successful listing may also build momentum for other companies in the deal pipeline, including rival Yangtze Memory Technologies and Baidu’s chip unit Kunlunxin.\n\nDeepSeek [may file as soon as this year for an IPO](https://www.businesstimes.com.sg/startups-tech/technology/chinas-deepseek-raise-fresh-capital-us74-billion-valuation-ahead-onshore-ipo), people familiar with the matter have said.\n\nSell-side analysts are even more bullish, as they see the company at the intersection of the biggest investment themes of the times: AI and tech self reliance.\n\nHuaxi Securities projects a market value of 5 trillion yuan at 40 times 2026 earnings, seeing revenue more than doubling to 572.7 billion yuan by 2028 from an estimated 277.7 billion yuan in 2026, with net profit climbing to 290 billion yuan.\n\nCXMT may be eligible for stock connect inclusion in time for the third quarter review in late August, taking effect in mid-September, at the earliest.\n\nGlobal investors may not have immediate access to the stock upon its listing, though they are also watching the debut with interest. 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Free.\n\nShare with us your feedback on BT's products and services\n\n[TRENDING NOW](/pulse?ref=trending-now)\n\nMAS tightens policy again in July, defying expectations for a hold\n\nUOB CEO’s youngest child Grant Wee turns burnout into a wellness business\n\nTemasek should publicly state its position on the long-rumoured CapitaLand-Mapletree merger\n\nDunearn House sells 56% of 380 units at average of S$3,140 psf at launch", "url": "https://wpnews.pro/news/china-chipmaker-cxmt-jumps-472-in-debut-after-us-9-8-billion-ipo", "canonical_source": "https://www.businesstimes.com.sg/companies-markets/capital-markets-currencies/china-chipmaker-cxmt-jumps-472-debut-after-us9-8-billion-ipo", "published_at": "2026-07-27 02:49:11+00:00", "updated_at": "2026-07-27 02:52:50.968904+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-chips", "ai-infrastructure", "ai-startups"], "entities": ["CXMT", "ChangXin Memory Technologies", "Agricultural Bank of China", "SK Hynix", "Micron Technology", "Nanya Technology", "Semiconductor Manufacturing International", "Hua Hong Grace Semiconductor"], "alternates": {"html": "https://wpnews.pro/news/china-chipmaker-cxmt-jumps-472-in-debut-after-us-9-8-billion-ipo", "markdown": "https://wpnews.pro/news/china-chipmaker-cxmt-jumps-472-in-debut-after-us-9-8-billion-ipo.md", "text": "https://wpnews.pro/news/china-chipmaker-cxmt-jumps-472-in-debut-after-us-9-8-billion-ipo.txt", "jsonld": "https://wpnews.pro/news/china-chipmaker-cxmt-jumps-472-in-debut-after-us-9-8-billion-ipo.jsonld"}}