Memory frenzy fuels CXMT’s historic debut
The company, earlier known as ChangXin Memory Technologies Corp is poised to become the biggest China-listed firm on its first day of trading after raising 66.6 billion yuan ($9.8 billion). Valuation multiples, a well oversubscribed IPO and shadow market bets all point in the direction of a debut pop that could boost the company’s market value several times above the initial 580 billion yuan.
China‘s homegrown champion is tapping into the voracious appetite for the memory chip story, a fulcrum of the global artificial intelligence buildout. As the world’s fourth-largest maker of dynamic random-access memory, or DRAM – the chips that underpin everything from smartphones to AI servers – CXMT has emerged as Beijing’s best hope of reducing dependence on foreign suppliers in areas including high-bandwidth memory, a critical component for AI data centers.
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The retail portion of the IPO was 212 times oversubscribed, with individual investors submitting 9.4 million orders for 7.07 trillion yuan worth of shares.
