Shares of CXMT, China's largest memory chip maker, surged more than 470% on their debut at the Shanghai Stock Exchange's STAR Market, pushing the company's valuation to about 3.3 trillion yuan ($487.3 billion).
This rise makes CXMT the most valuable listed firm in mainland China despite a global selloff in technology stocks.
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Company Background and IPO
Founded in 2016 by Chairman Zhu Yiming and headquartered in Hefei, Anhui Province, CXMT produces dynamic random-access memory (DRAM) chips used in AI data centers, mobile phones, PCs, and tablets.
The company intends to use most proceeds from its initial public offering (IPO) to expand memory chip production and fund research and development.
CXMT sold 177.9 million American depositary shares at $149 each.
The shares rose as much as 17% on their first day of trading on Nasdaq but later gave up some gains.
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Market Impact
The strong IPO performance offers reassurance to Chinese financial officials who have been implementing measures to stabilize a stock market that recently lost over $1.5 trillion in value.
South Korean companies Samsung Electronics and SK Hynix, along with US-based Micron, dominate around 90% of the global DRAM market.
CXMT is a key supplier to AI chip maker Nvidia.
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In May, SK Hynix's market value surpassed $1 trillion amid rising demand for AI chips.
