CXMT shares surge 535% in Shanghai debut as AI memory demand fuels largest Chinese IPO since 2010
The Chinese memory-chip maker opened at Rmb49.50, more than five times its IPO price, as investors bet on AI-driven demand for DRam chips.
A blockbuster debut
CXMT Corp. shares began trading on the Shanghai Stock Exchange on Monday, opening at Rmb49.50 ($7.30) per share, a 471% premium to the initial public offering price of Rmb8.66. The stock quickly surged further, hitting an intraday high of Rmb55.03, a gain of as much as 535%, according to Bloomberg data. The debut marked mainland China's largest IPO since Agricultural Bank of China listed in 2010, with CXMT aiming to raise nearly $10 billion. The strong demand reflected investor enthusiasm for a company described by Bloomberg as China's memory-chip bellwether, and the 535% intraday surge made it one of the best-performing large IPOs on the Shanghai exchange in recent years. The stock ended the session well above its IPO price, though off its intraday high, as some investors locked in profits.
- Shares priced at Rmb8.66
- Stock opens at Rmb49.50, up 471%
- Shares hit Rmb55.03, a 535% gain
AI memory demand fuels the offering
CXMT produces DRam chips, which provide short-term memory in computers and are essential components for artificial intelligence servers. The company plans to use the IPO proceeds to expand production capacity and invest in research and development of next-generation DRam technology, aiming to close the gap with industry leaders. High demand from AI companies has created a global supply squeeze for memory chips, the Financial Times reported, particularly affecting consumer electronics makers that compete with cloud providers for limited output. CXMT's expansion is seen as a step toward easing that bottleneck while positioning the company to capture a larger share of the rapidly growing AI memory market.
Nomura sees 1,239% upside
Nomura Holdings Inc. issued a research note projecting that CXMT shares could rally a further 1,239% from the IPO price over time as the company gains market share. The target implies a share price of about Rmb116, based on the Rmb8.66 IPO price, reflecting confidence that CXMT can compete with established global players. The call points to optimism surrounding Chinese semiconductor companies, though the note itself focused on market share gains rather than policy support.
Global context and SK Hynix parallel
CXMT's listing comes just two weeks after South Korea's SK Hynix, the world's second-largest memory chip maker, raised more than $26 billion in a US initial public offering. That deal, one of the largest tech listings globally, demonstrated the intense investor appetite for memory-chip stocks amid the AI boom. CXMT's debut, while smaller in dollar terms, drew similar enthusiasm from both retail and institutional investors in China, reflecting the country's growing clout in the semiconductor sector. The back-to-back listings illustrate the momentum in the memory chip market.
