CXMT Jumps 500% in Shanghai Debut as AI Memory Demand Lifts Value to Rmb3.1tn
Updated
Updated · Financial Times · Jul 27
CXMT Jumps 500% in Shanghai Debut as AI Memory Demand Lifts Value to Rmb3.1tn
3 articles · Updated · Financial Times · Jul 27
Summary
Rmb49.50 opening shares—up from an Rmb8.66 IPO price—pushed CXMT nearly 500% higher on Monday and lifted its market value to Rmb3.1tn, making it mainland China’s most valuable listed company.
Rmb57.9bn raised from 6.688 billion shares made the listing the mainland’s biggest IPO since 2010, with an overallotment option that could take proceeds to nearly $10 billion.
AI-driven memory shortages fueled investor demand as CXMT, the world’s fourth-largest DRAM maker, turned profitable this year with Rmb33bn in first-quarter earnings after a decade of accumulated losses.
US export controls still limit its access to ASML’s most advanced tools, leaving CXMT behind global rivals in high-bandwidth memory even as it expands production and develops HBM chips.
Hefei government backing on financing, land and supplier clustering has helped turn CXMT into a centerpiece of Beijing’s push to build a domestic AI chip supply chain insulated from US restrictions.