CXMT debuts with 472% surge in China's second-largest IPO ever

Changxin Memory Technologies (CXMT), China's leading memory chip manufacturer, made a spectacular debut on the Shanghai Stock Exchange, with its shares soaring 471.59% on the first day of trading. This initial public offering (IPO) ranks as the second-largest in mainland China's history, potentially raising over $9.8 billion.

The company offered 6.688 billion shares at an initial price of 8.66 yuan ($1.28) each. By the market's opening, the price had multiplied nearly sixfold to 49.5 yuan ($7.31). CXMT retains the option to increase the offering to 7.691 billion shares, which would push the total proceeds to approximately 66.6 billion yuan ($9.8 billion).

This fundraising effort surpasses the initial target of 29.5 billion yuan ($4.3 billion) allocated for investment projects. The expected capital injection will be used to accelerate CXMT's research and development (R&D) initiatives and expand its manufacturing capabilities. Some projections suggest the company could double its production output within the current year.

Strategic investors, including tech giant Alibaba and electric vehicle maker Nio, along with state-owned entities, are set to receive half of the offered shares. Retail investors will acquire about 10% of the shares. Founded in 2016, CXMT has rapidly become China's largest producer of dynamic random-access memory (DRAM) chips, essential for devices like smartphones and AI servers. Globally, it ranks as the fourth-largest DRAM supplier with a 7.67% market share in the last quarter of 2025.

The IPO is a significant step in Beijing's strategy to foster a national champion in the semiconductor industry, reducing reliance on foreign suppliers like South Korea's SK Hynix and Samsung, and the U.S.'s Micron. This move aims to influence global pricing, supply dynamics, and geopolitical leverage in the critical chip sector.