Investing.com — Chinese memory-chip maker CXMT Corp. could become the mainland’s most valuable listed company shortly after its Shanghai debut, following a heavily oversubscribed 66.6 billion yuan ($9.8 billion) initial public offering, Bloomberg reported. <\/p>\n
CXMT sold 6.688 billion shares at 8.66 yuan each before the potential exercise of an overallotment option. The offering is China’s second-largest domestic IPO, trailing Agricultural Bank of China’s roughly $10 billion listing in 2010. <\/p>\n
The share price values CXMT at about 580 billion yuan before trading begins. A first-day gain of around 330% would lift its market capitalisation above Industrial and Commercial Bank of China’s 2.6 trillion yuan, making CXMT the largest company listed in mainland China. <\/p>\n
Newly listed shares are not subject to daily price limits during their first five trading sessions, leaving room for a sharp opening move. <\/p>\n
Demand was led by individual investors, with the retail allocation oversubscribed 212 times. Around 9.4 million orders were submitted for shares worth 7.07 trillion yuan. <\/p>\n
The company’s IPO valuation is also fueling expectations. CXMT was priced at about 2.4 times book value, a 56% discount to the average for global DRAM producers, including SK Hynix Inc (KS:000660), Micron Technology Inc (NASDAQ:MU), and Nanya Technology Corp (TW:2408). <\/p>\n
CXMT is the world’s fourth-largest producer of dynamic random-access memory, which is used in smartphones, computers and artificial intelligence servers. The Hefei-based company is also developing high-bandwidth memory, a key component in AI data centres. <\/p>\n
Its listing gives investors direct exposure to Beijing’s drive to expand domestic semiconductor production and reduce reliance on foreign chip suppliers. <\/p>\n
Chinese AI-related IPOs have recorded large opening gains over the past year. Semiconductor-testing company Semight Instruments rose 876% on its debut in April, and chip designer Moore Threads gained 425% in December. <\/p>\n
CXMT could become eligible for the Stock Connect programme during the third-quarter review in late August, with possible inclusion from mid-September. That would give eligible investors in Hong Kong broader access to the Shanghai-listed shares. <\/p>\n
A strong debut could support planned listings from Yangtze Memory Technologies, Baidu Inc (NASDAQ:BIDU) Kunlunxin chip division and other Chinese technology companies. <\/p>\n
Related articles <\/p>\n
CXMT set for historic Shanghai debut after $9.8 billion IPO<\/a> <\/p>\n Goldman expects lower but still attractive stock market returns in 2026<\/a> <\/p>\n