By Yantoultra Ngui and Kane Wu <\/p>\n
SINGAPORE\/HONG KONG, July 16 (Reuters) – Six Chinese investment banks working on chipmaker CXMT’s $8.6 billion IPO are set to take home at least $41 million in fees, company filings showed, in a \u200cboost for an industry whose income pool has shrunk over the past half decade. <\/p>\n
The payout would bring the \u200cyear’s total fees from mainland IPOs to about $684.62 million, gaining on last year’s $984.75 million, LSEG data showed. That compared with a 2022 peak of $4.16 billion \u200bon IPOs from heavyweights including China Mobile and CNOOC. <\/p>\n
The share sale continues a revival of the onshore IPO market as the government lowers barriers for AI, semiconductor and robotics companies aiming to raise money from public markets, in a push for technological advancement. <\/p>\n
While CXMT’s fee rate of 0.48% of IPO proceeds is well below market average, the figure indicates its bargaining power in one of \u200cChina’s most high-profile listings of the year. <\/p>\n
ChangXin \u2060Memory Technologies (CXMT) [688825.SS] opened its IPO for subscription on Thursday. The firm is China’s biggest maker of dynamic random-access memory (DRAM) chips that are used in smartphones, computers, servers and other electronics. <\/p>\n
If CXMT raises $8.6 \u2060billion, the initial public offering will be Asia’s biggest so far this year as well as the biggest-ever Chinese A-share semiconductor IPO, surpassing that of Semiconductor Manufacturing International Corp (SMIC) in 2020. <\/p>\n
China Securities and CICC are sponsoring the IPO, or playing lead roles in the share \u200bsale, \u200bIPO filings showed. <\/p>\n
Other banks involved are China Merchants Securities, Guotai Haitong \u200bSecurities, Guoyuan Securities and Huatai Securities unit Huatai United \u200cSecurities, the filings showed. <\/p>\n
CXMT expects fees of 280.6 million yuan, equal to about 0.48% of total proceeds. That compares with the 4.52% average for China A-share IPOs this year, LSEG data showed. <\/p>\n
If demand triggers an overallotment option, proceeds could reach $9.8 billion with fees at 296 million yuan, the filings showed. <\/p>\n
“This high-profile IPO carries both commercial value and strategic importance,” said Shen Meng, director at boutique bank Chanson & Co in Beijing. <\/p>\n
Competition to take part in the IPO pushes down fees, Shen said. “Nevertheless, given \u200cCXMT’s huge fundraising size, investment banks can still reap substantial proceeds even \u200bwith relatively reduced fee rates.” <\/p>\n
CICC declined to comment. CXMT, China Securities, China \u200bMerchants Securities, Guotai Haitong Securities, Guoyuan Securities and Huatai \u200bUnited Securities did not respond to requests for comment. <\/p>\n
China Securities, CICC, Guotai Haitong and Huatai Securities \u200cranked among the top five China A-share IPO fee \u200bearners from 2022 to 2026 \u200byear-to-date, LSEG data showed. China Merchants was ninth. <\/p>\n
The CXMT fee is also small relative to other recent deals. Last month, China Resources New Energy paid 0.65% for its 24.5 billion yuan Shenzhen listing. <\/p>\n
In the U.S., SpaceX paid $500 million \u200bfor its record $75 billion IPO last month, \u200cequal to about 0.67% of proceeds, while South Korea’s SK Hynix paid about 0.97% of $26.5 billion raised \u200bvia American depositary receipts last week. <\/p>\n
($1 = 6.7662 Chinese yuan renminbi) <\/p>\n
(Reporting by Yantoultra Ngui in Singapore and Kane Wu \u200bin Hong Kong; Editing by Sumeet Chatterjee and Christopher Cushing) <\/p>\n","protected":false},"excerpt":{"rendered":"By Yantoultra Ngui and Kane Wu SINGAPORE\/HONG KONG, July 16 (Reuters) – Six Chinese investment banks working on…\n","protected":false},"author":2,"featured_media":544088,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[114,95116,11554,85,20602,46,27109],"class_list":["post-544087","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-china-mobile","tag-china-securities","tag-il","tag-investment-banks","tag-israel","tag-semiconductor-manufacturing-international-corp"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/544087","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=544087"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/544087\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/544088"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=544087"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=544087"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=544087"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}