CXMT Sets Offering Price at 8.66 Yuan, Poised to Raise Up to 15 Trillion Won

China’s memory semiconductor company ChangXin Memory Technologies (CXMT) is launching an initial public offering (IPO) set to approach 10 billion dollars (approximately 15 trillion won), buoyed by the surging demand for artificial intelligence (AI) memory chips.

Reuters Yonhap News

According to the Financial Times (FT) and Bloomberg News on July 14 (local time), CXMT set its offering price at 8.66 yuan per share in documents submitted to the Shanghai Stock Exchange. The base number of shares to be issued is about 6.69 billion. Before the exercise of the overallotment option, the expected proceeds amount to about 57.9 billion yuan (8.55 billion dollars).

If the entire overallotment option of about 1 billion additional shares is exercised, the total shares issued would increase to roughly 7.69 billion, and the total proceeds would rise to 66.6 billion yuan (9.8 billion dollars). Based on the offering price and prior to overallotment, the company’s post-listing market capitalization will be 579.2 billion yuan.

CXMT plans to use the proceeds to expand DRAM production and for research and development (R&D). DRAM is a type of memory semiconductor that temporarily stores data in computers and servers. According to its prospectus, CXMT posted a record net profit of about 33 billion yuan in the first quarter of this year, driven by higher memory semiconductor prices. This is the highest quarterly profit in the company’s history.

FT noted that this IPO is projected to be the largest offering in mainland China since the Agricultural Bank of China went public in 2010. Bloomberg also evaluated that it will be the second largest IPO in Chinese history, following the Agricultural Bank of China.

Notably, this listing signals that China’s capital market, which has suffered years of sluggish IPO activity, is showing signs of recovery. So far this year, IPO proceeds in mainland China have already reached 198 billion yuan, surpassing the entire amount raised in 2023. This is the highest level since 2023.

Bloomberg reported that if CXMT’s IPO is successful, it could provide momentum for the IPOs of other companies such as competitor Yangtze Memory Technologies (YMTC) and Baidu’s semiconductor subsidiary Kunlunxin, accelerating their listings as well.

There is also speculation that the potential listing of DeepSeek, which could become another milestone for China’s AI industry, may materialize. According to sources, DeepSeek could apply for an IPO as early as this year.

This content was produced with the assistance of AI translation services.