Chinese memory chipmaker CXMT has become the country’s most valuable company on the mainland stock market. Its shares soared more than fivefold in their trading debut, lifting its market value to almost $500bn, AP reported.
The rally pushed the company ahead of technology giant Tencent in onshore market capitalisation. It made CXMT the standout performer in a year marked by strong Chinese IPOs. Trading in the company’s shares accounted for around 7% of all turnover on China’s domestic stock exchanges on Monday.
Investor demand was extraordinary even by Chinese standards. The retail tranche of the IPO was 212 times oversubscribed, attracting applications worth more than 7 trillion yuan ($1 trillion).
CXMT recently reported quarterly net profit of $3.7 billion on revenue of $7.5 billion. Bloomberg also reported that Apple is considering using CXMT memory chips in products sold in the Chinese market. This move would mark a significant endorsement for the domestic supplier.
What is CXMT?
Founded a decade ago as ChangXin Memory Technologies, CXMT has rapidly grown into the world’s fourth-largest producer of DRAM memory chips, behind South Korea’s SK Hynix and Samsung Electronics, and US-based Micron Technology. The company now accounts for nearly 8% of global DRAM shipments, according to industry estimates.
The IPO raised nearly $10 billion. The proceeds are earmarked for expanding wafer fabrication capacity and accelerating production of high-bandwidth memory (HBM) chips, essential for training and running advanced artificial intelligence models.
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