CXMT’s mega IPO draws frenzy from retail investors to DeepSeek founder’s fund

CXMT, a Chinese memory-chip maker, drew massive demand from retail investors and DeepSeek founder Liang Wenfeng for its blockbuster IPO on Shanghai's Star Market, aiming to raise up to 66.6 billion yuan. Investors expect high allotment rates and sharp gains amid the AI boom, with some valuations projecting a market cap of 3 trillion yuan.

CXMT’s mega IPO draws frenzy from retail investors to DeepSeek founder’s fund Investors are hoping for a relatively generous allotment rate and sharp gains when the memory-chip maker debuts on Shanghai’s Star Market Howard Liu /author/howard-liu in Beijing blockbuster initial public offering https://sc.mp/1b2f0?utm source=copy-link&utm campaign=3360615&utm medium=share widget to public subscription on Thursday morning, Luo Yi applied for 86,000 shares – despite acknowledging that she knew little about the semiconductor industry. The 60-year-old stock investor from southwestern Sichuan province was encouraged by her securities account manager, who told her that CXMT’s unusually large share sale could produce a higher allotment rate than most Chinese mainland IPOs. DeepSeek founder Liang Wenfeng https://sc.mp/29mqu?utm source=copy-link&utm campaign=3357525&utm medium=share widget , submitted valid preliminary bids at 8.78 yuan US$1.29 per share, according to a filing on Tuesday. This represents a 1.4 per cent yield on the original price of 8.66 yuan per share, as both professional and amateur stock investors bet on the country’s memory chip champion amid the artificial intelligence boom. CXMT is issuing about 6.69 billion shares, expecting to raise gross proceeds of 57.9 billion yuan US$8.56 billion . If the 15 per cent overallotment option is fully exercised, proceeds could rise to 66.6 billion yuan. Some brokerage valuation scenarios have put the company’s market cap at as much as 3 trillion yuan after listing, which means that the gain would be about 36 yuan per share, or more than fourfold. “For A-share IPOs in China, winning an allocation usually means making money,” said Kevin Chen, a 35-year-old employee at a state-owned enterprise in Shanghai, who also subscribed for shares.