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(Sharecast News) - Shares in ChangXin Memory Technologies soared on their market debut on Monday, making the chip maker the most valuable listed company in mainland China.
Despite a recent global sell-off in tech stocks, the company - China's fourth-biggest maker of semiconductors - finished its first day of trading on the Shanghai Stock Exchange up a record 466%, having raised $8.6bn by selling 6.7bn shares. It was mainland China's largest initial public offering since the Agricultural Bank of China in 2010.
Founded in 2016, CXMT is a leading producer of dynamic random access memory (DRam) chips, with around 8% to 10% of the market. DRam chips are used in a range of devices, from artificial intelligence data centres to cameras. Money raised through the IPO will be used to ramp up production as well as fund further research and development.
Ipek Ozkardeskaya, senior analyst at Swissquote, said: "You may have never head of this company before, but it has quietly become China's national memory champion It has been growing a breath-taking speed, benefiting from booming AI demand as well as Beijing's push for semiconductor self-sufficiency.
"Beyond the pricing story, CXMT is another reminder that China is quietly buildings its own AI supply chain, from chips to models, reducing its dependency on Western technology while becoming an increasingly serious competitor to the incumbents."
Patrick Munnelly, partner, market strategy, at Tickmill Group, said the IPO "underscores how aggressively domestic investors are chasing national semiconductor champions tied to the AI theme.
"Last week, global investors were questioning whether AI capex could justify valuations. Today, Chinese investors are giving a domestic chip maker a spectacular debut premium. That does not settle the AI return on investment debate, but it shows that the strategic bid for chip exposure remains powerful, especially where national industrial policy and AI infrastructure overlap."
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