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CXMT sets record $8.5bn Shanghai IPO at $85bn value
China’s biggest memory chipmaker has priced a 57.9 billion yuan Shanghai IPO, topping SMIC’s record and valuing CXMT at roughly $85bn.
Image: TNW
ChangXin Memory Technologies, China’s largest memory chipmaker, has priced its Shanghai IPO at 8.66 yuan ($1.28) a share, according to the South China Morning Post. The deal is set to raise about 57.9 billion yuan, or $8.5bn, making it the biggest listing by a Chinese semiconductor company on a mainland exchange.
That would put CXMT ahead of SMIC, which raised 53.23 billion yuan in Shanghai in 2020. The Hefei-based company is selling nearly 6.7 billion shares, roughly 10% of the business. At that price, it would debut on Shanghai’s Star Market with a valuation of 579 billion yuan, or about $85bn. A 15% overallotment option could lift the raise to 66.6 billion yuan ($9.8bn). Subscriptions open on Thursday, but the company has not set a trading date.
CXMT’s growth and market position
Founded in 2016 with government backing, CXMT has become China’s domestic challenger to Samsung, SK Hynix, and Micron. The company makes DRAM, the memory used in phones, PCs, and servers, and now holds an estimated 7.7% of the global DRAM market.
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Its customer list includes Alibaba, Tencent, and ByteDance. The company has also benefited from the AI-driven memory shortage that has sharply increased DRAM prices. In the first quarter, CXMT’s revenue rose by more than 700% year on year to 50.8 billion yuan ($7.4bn), and it swung to a large profit, according to reports on its filings.
US pressure hangs over the listing
The timing is notable. Last month, the Pentagon added CXMT to its list of “Chinese military companies.” Reuters has also reported that a US interagency committee cleared the company for the Commerce Department’s Entity List, though that move has not yet taken effect.
A public listing gives CXMT a large domestic funding buffer before any tougher restrictions arrive. The company still depends on foreign manufacturing tools, while US export controls already limit access to advanced equipment from suppliers including ASML.
CXMT said in its prospectus that it needs 29.5 billion yuan for investment projects, far below the amount this offering is expected to bring in. That leaves the company with substantial room to expand capacity as Beijing pushes harder for semiconductor self-reliance.
Enterprise Editor
Marcus follows the money. He covers enterprise software, cloud architecture, and the tectonic shifts in Big Tech strategy. He translates dense earnings calls and complex M&A activity into actionable insights about where the industry is actually heading. If a tech giant makes a silent pivot, Marcus is usually the first to notice.
via TNW
