Surging 400% Right After Listing, Chinese Version of SK Hynix Becomes Top Firm by Market Cap

In the global DRAM semiconductor market dominated by Samsung Electronics, SK Hynix, and U.S.-based Micron, China Memory Technologies (CXMT), the vanguard of China's semiconductor self-reliance, has risen to become the top company by market capitalization in China immediately upon its stock market debut.

CXMT, which was listed today (July 27) on the Sci-Tech Innovation Board (STAR Market) of the Shanghai Stock Exchange, saw its share price surge more than 400% from its initial public offering (IPO) price of 8.66 yuan to 44 yuan as of 11:00 AM local time, surpassing a market capitalization of 2.9 trillion yuan and claiming the number one spot for total market value on the Chinese mainland.

Through this initial public offering, CXMT issued over 6.68 billion new shares at an IPO price of 8.66 yuan, raising more than 12 trillion won in Korean won equivalents.

The IPO was immensely popular, drawing subscription competition rates exceeding 200-to-1 for retail investors and 500-to-1 for institutional investors, respectively, and was evaluated as the largest IPO in the Asian stock market this year and the largest ever for a Chinese semiconductor company.

Despite recent stock market volatility centered around semiconductor shares, foreign media outlets including Bloomberg anticipated a first-day share price surge based on the company's valuation and subscription enthusiasm. Global investment firm abrdn commented, "It would not be surprising even if trading begins at a level 500% higher than the IPO price," adding, "We are very positive about the local semiconductor supply chain and overall Chinese hardware."

In the case of the STAR Market, there are no price fluctuation limits for the first five trading days after listing.

Market research firm Counterpoint Research noted that in terms of revenue for the first quarter of this year, Samsung Electronics (38%), SK Hynix (29%), and Micron (22%) ranked first through third, accounting for nearly 90% of the total global DRAM market. However, it also analyzed that CXMT's market share, which stood at a mere 3% in the first quarter of last year, has climbed to 8%.

CXMT plans to channel the funds raised from this IPO into expanding production lines and advancing its DRAM technology.

Reported by Kim Taewon | Video by Lee Yujin | Graphics by Yang Hyemin | Produced by SBS Digital News
※ Please note: This article was translated by AI and may contain errors.