China's CXMT Prepares for Massive IPO, Targeting Up to 15 Trillion Won

Bloomberg reported on July 15 that ChangXin Memory Technologies (CXMT), the world's fourth-largest DRAM manufacturer, is preparing for a record-breaking initial public offering (IPO), marking a milestone in China's push for semiconductor self-sufficiency.
CXMT announced in a regulatory filing on July 14 that it has set its offering price at 8.66 yuan per share.
The offering, intended for listing on the STAR Market (the Shanghai Stock Exchange's board for science and technology innovation), involves 6.69 billion new shares.
Including the over-allotment option (greenshoe), the total could reach 7.69 billion shares.
Consequently, the total offering size could reach up to 66.6 billion yuan (approximately 14.6 trillion won).
This figure is roughly double the initial market expectations.
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Li Minghong, a fund manager at Beijing Yikun Asset Management, stated, "The fact that this offering has attracted demand far exceeding the target shows that investors are confident that the upward trend in the memory market will continue."
He added, "This demonstrates the company's unique status. Unlike companies driven purely by market logic, CXMT has received strong state support since its inception. This indicates that the market recognizes the company's strategic importance in resolving bottlenecks."
In terms of offering size, this IPO is the second-largest in Chinese history, following the Agricultural Bank of China (10 billion dollars) in 2010.
If the listing is completed successfully, it is expected to provide momentum for other companies preparing for IPOs, such as competitor Yangtze Memory Technologies (YMTC) and Kunlunxin, the semiconductor division of Baidu.
(Photo: Provided by CXMT, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.