CXMT's $8.56B IPO Draws Frenzy from Retail Investors to DeepSeek

CXMT, a Chinese manufacturer of memory chips, is preparing for its initial public offering on Shanghai's Star Market, generating significant excitement among retail investors and DeepSeek's founder fund. The firm plans to issue approximately 6.69 billion shares, aiming to secure gross proceeds of 57.9 billion yuan ($8.56 billion), which could increase to 66.6 billion yuan if the 15% overallotment option is fully utilized. Investors are optimistic about a favorable allotment rate and substantial profits, with some brokerages estimating the company's market capitalization could reach 3 trillion yuan post-listing, suggesting a potential gain of around 36 yuan per share, equating to more than a fourfold increase. A 60-year-old investor from Sichuan province was motivated by her securities account manager's insights on the large share sale, while Kevin Chen, a 35-year-old worker at a state-owned enterprise in Shanghai, also subscribed, believing that securing shares in A-share IPOs typically leads to profits. This IPO arrives during a surge in artificial intelligence, attracting both professional and novice investors to the nation’s memory chip leader.