'ChangXin Memory Technologies' saw its shares climb more than 470% on debut in Shanghai’s tech‑heavy Star Market, making it the most valuable company listed in mainland China with a valuation of 3.3 trillion yuan ($487 bn).
'CXMT' produces dynamic random‑access memory (DRAM) chips that power artificial‑intelligence data centres, mobile phones, PCs and tablets, and it was founded in 2016 by Chairman Zhu Yiming. The firm plans to use most of the initial public offering proceeds to boost production and accelerate research and development.
'The extraordinary jump' was driven by demand far outstripping supply, with only 7% of shares available for trading, according to investment strategy director Anna Macdonald of Hargreaves Lansdown.
'China’s government is pushing ahead with plans to make its technology industry self‑reliant, and a homegrown chipmaker like CXMT has met that ambition with ample market enthusiasm.'
'South Korean giants Samsung Electronics and SK Hynix and US‑based Micron dominate the global DRAM market, accounting for around 90% of production, but CXMT’s debut suggests growing domestic competition.'
'Earlier this month, SK Hynix raised $26.5 bn (£19.8 bn) in its New York offer, marking the largest foreign listing in the US, and its shares surged as much as 17% before settling.'
'The dramatic debut offers a welcome counterpoint to the global tech sell‑off that has eroded more than $1.5 trn in market value in recent weeks.'
