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CXMT jumps more than 500% on Shanghai debut after landmark IPO
The stock’s first-day rally lifted CXMT’s market value to about 3.65 trillion yuan, making it China’s most valuable listed company by valuation and underscoring its role in building domestic AI chips amid US semiconductor restrictions.
Shares of CXMT Corp surged more than 500% in their debut on the Shanghai Stock Exchange on Monday, following the Asia biggest IPO of the year, according to LiveMint Markets citing Reuters.
At its intraday peak, CXMT traded at 54.65 yuan versus an IPO price of 8.66 yuan, pushing the chipmaker to an estimated market capitalisation of around 3.65 trillion yuan, or about $539.21 billion. The gain also vaulted CXMT past Industrial and Commercial Bank of China, which had previously led China’s rankings by market value.
LiveMint Markets reports that the strong debut comes as US restrictions on advanced semiconductor technology have increased pressure on Chinese firms to strengthen domestic supply chains, with CXMT positioned as a key pillar of China’s chip strategy, particularly for AI-related memory.
The company raised 66.6 billion yuan, selling 6.688 billion shares at 8.66 yuan per share, with the IPO noted as the second-largest in China history on mainland listings after Agricultural Bank of China’s nearly $10 billion share sale in 2010. LiveMint Markets also notes CXMT is a leading domestic DRAM maker and is viewed as important for high bandwidth memory used in AI data centres.