CXMT shares surged 466% in Shanghai opening after record IPO

CXMT Corp. It closed Monday’s first trading session up 466%, ending at 49 yuan compared to its IPO price of 8.66 yuan per share, after raising 57.92 billion yuan ($8.6 billion) in the biggest mainland Chinese semiconductor offering on record, according to Reuters.

The debut lifted CXMT’s market capitalization to 3.3 trillion yuan ($488 billion), surpassing industrial and commercial giant Bank of China and making the Hefei-based chipmaker the most valuable company on China’s onshore list. CXMT reached an intraday high of 55.03 yuan before returning to close at 49 yuan.

Monday’s session of CXMT generated a trading value of about 141 billion yuan on the Shanghai Stock Exchange, a level that no A-share has reached in a single day. At the time of registration, only 6.73% of the total shares were traded, the remaining part was subject to lock-up restrictions.

The IPO surpasses SMIC’s $7.5 billion Shanghai share sale in 2020. Retail demand is intense, with Bloomberg reporting that the public sale drew 9.4 million individual orders totaling 7.07 trillion yuan — a subscription rate of 212 times the available allocation.

CXMT, formerly known as ChangXin Memory Technologies, is the world’s fourth largest manufacturer of random access memory chips – components used in devices ranging from smartphones to AI servers. The global DRAM market is dominated by Samsung Electronics, SK Hynix, and Micron Technology. Based on sales figures for the fourth quarter of 2025, CXMT holds a 7.67% share of the global DRAM market by 2025, the company said in its IPO prospectus.

CXMT directs the collection of revenue in the first half in the range of 110 billion to 120 billion yuan, more than 7 times the figure of the previous year, along with a net profit of 66 billion to 75 billion yuan, swinging from the loss of the previous year. The company posted a first-quarter operating profit of 35.43 billion yuan, a reversal of a loss of 2.83 billion yuan in the same period last year, according to CNBC.

Morningstar’s Jing Jie Yu told Reuters that the IPO was priced at about one time the company’s 2027 price-to-book estimate, which is sharply lower than the range of 2.1 to 2.3 times for international peers, but he considered the opening day too early, citing the booming memory industry’s export cycle. Yuan Yuwei, who manages money at Trinity Synergy Investments, said the stock was overpriced and speculative, warning that “it’s hard to say the optimism is sustainable.”