China’s CXMT shares rise 472% on Star Market debut, valuing DRAM maker at US$489 billion

Shares of ChangXin Memory Technologies (CXMT), China's leading DRAM maker, surged 472% on their Shanghai Star Market debut, giving the company a market capitalization of 3.31 trillion yuan (US$489 billion). The IPO, priced at 8.66 yuan per share, raised up to 66.6 billion yuan, surpassing the 53.2 billion yuan raised by Semiconductor Manufacturing International Corporation (SMIC) in 2020. The listing comes amid an AI-driven memory boom, with the China Securities Regulatory Commission (CSRC) holding meetings to address market concerns about liquidity.

China’s CXMT shares rise 472% on Star Market debut, valuing DRAM maker at US$489 billion China’s leading DRAM maker completes the biggest-ever Star Market IPO amid an AI-driven memory boom Howard Liu /author/howard-liu in Beijing Shares of ChangXin Memory Technologies CXMT , China’s leading maker of dynamic random-access memory DRAM chips, rose 472 per cent on their Shanghai trading debut, giving the company a market capitalisation of 3.31 trillion yuan US$489 billion . initial public offering IPO price of 8.66 yuan. https://www.scmp.com/tech/article/3360615/china-memory-giant-cxmt-valued-us85-billion-record-shanghai-ipo?module=inline&pgtype=article The size of the closely watched offering, up to 66.6 billion yuan, is set to surpass the 53.2 billion yuan raised by chip foundry Semiconductor Manufacturing International Corporation SMIC in 2020. There were market concerns that CXMT would draw funds away from other Chinese technology stocks, prompting the China Securities Regulatory Commission CSRC to hold a series of meetings with representatives of listed companies, securities firms, fund managers and academia. Participants called for stronger guidance of market expectations and a more institutionalised market-stabilisation mechanism, while the regulator pledged to respond to concerns and enhance the market’s inherent stability, according to a CSRC statement issued on July 21. However, state-run newspapers, including the Shanghai Securities News and Securities Daily, published commentaries dismissing fears that the IPO would drain liquidity from the wider market.