The technology group has become China’s most valuable listed company following the largest IPO on the mainland since 2010.
By the Consejeros Editorial Team
Shares in CXMT, China’s largest manufacturer of memory processors, soared on Monday following its debut on the Shanghai Stock Exchange, in what was the largest initial public offering on the mainland Chinese stock market in recent years.
CXMT shares rose by 472 per cent and, in the early afternoon, were trading up 462 per cent. It has become the most valuable company listed on a mainland Chinese stock exchange, with a market capitalisation of around CN¥3.3 trillion (over $487 billion). However, its estimated market value remains lower than that of South Korean and US memory chip manufacturers such as Samsung Electronics, SK Hynix and Micron Technology.
CXMT is among the many chip manufacturers that have reaped huge benefits from the artificial intelligence boom. Its business is thriving as China pushes for greater self-sufficiency in cutting-edge technologies, whilst grappling with limited access to advanced chip-making machinery due to US-led restrictions.
The company raised at least $8.6 billion from the offering, priced at CN¥8.66 ($1.3) per share, during its initial public offering on the Shanghai Stock Exchange’s STAR Market – similar to the Nasdaq and also known as the Science and Technology Innovation Board.
It was the second-largest IPO in mainland China, following the Agricultural Bank of China’s $22.1 billion share offering in Shanghai and Hong Kong in 2010.
