CXMT sets record with $85 billion valuation in Shanghai IPO

ChangXin Memory Technologies (CXMT), a DRAM producer located in Hefei, Anhui province, has set the price for its initial public offering in Shanghai at 8.66 yuan ($1.28) per share. This offering, which comprises almost 6.7 billion shares—accounting for 10% of the company's increased capital—is anticipated to generate gross proceeds of 57.9 billion yuan ($8.5 billion), resulting in an implied valuation of 579 billion yuan ($85.2 billion) on the Star Market. Should the 15% overallotment option be fully utilized, the total could rise to 7.7 billion shares, potentially raising up to 66.6 billion yuan ($9.83 billion). This IPO exceeds the 53.23 billion yuan raised by Semiconductor Manufacturing International Corporation in 2020, making it the largest A-share IPO for a Chinese chip firm. Subscriptions will occur online and offline on Thursday, although a trading debut date has yet to be revealed.