China’s largest IPO this year raises $8.6 billion as CXMT’s stock jumps 466% on debut, pressuring global memory chip rivals.
CXMT, a Chinese DRAM maker, closed its first trading day at 49 yuan, a 466% gain over its 8.66-yuan offer price. The IPO raised $8.6 billion, valuing the company at approximately $488 billion. Only 6.73% of shares are freely tradable, increasing volatility risk.
The listing underscores CXMT’s rapid revenue growth, with first-half revenue expected between 110 billion and 120 billion yuan, up over sevenfold year-over-year. While CXMT lags in high-bandwidth memory (HBM) technology, its expansion could pressure Micron’s DRAM pricing in consumer and server markets.
Apple may benefit from CXMT’s supply flexibility, though U.S. restrictions could delay integration. Micron faces heightened competition as Chinese capacity grows, particularly in standard DRAM.