ChangXin Memory Technologies, China’s largest domestic memory chipmaker, raised RMB57.92 billion (USD8.6 billion) in its Shanghai Star Market debut on July 27. The offering became the largest A-share initial public offering of the year.
It also set a record for the biggest fundraising on the Star Market, the tech-focused board of the Shanghai Stock Exchange. Shares opened at RMB49.50, a 471.59% increase from the RMB8.66 offer price. The surge pushed CXMT’s market capitalization to RMB3.31 trillion, surpassing Industrial and Commercial Bank of China as the most valuable A-share company.
Within an hour of trading, turnover in CXMT shares exceeded RMB90 billion, breaking the single-day trading value record for an individual A-share stock.
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Legal teams and cornerstone investors
Four law firms advised on the transaction: AllBright Law Offices, Llinks Law Offices, Commerce & Finance Law Offices, and Haiwen & Partners. AllBright represented the company, with senior partner Wang Li leading a team that included partners Zhu Linhai, Zhu Ming, and Shen Cheng. Haiwen acted as special legal counsel for the strategic placement.
Llinks and Commerce & Finance advised the joint sponsors, CICC and China Securities. The Llinks team was led by partners Wayne Chen, Chris Xia, and Baker Chen, while Ying Xiaochen headed the Commerce & Finance group.
Cornerstone investors showed strong interest in the offering. Portfolios managed by the National Social Security Fund and the Basic Old-age Insurance Fund participated, along with major insurers China Life and People’s Insurance Company of China. Semiconductor supply chain companies Advanced Micro-Fabrication Equipment and Montage Technology also joined, as did tech firms Xiaomi, Meituan, and Alibaba Cloud, plus automaker Chery.
Funds earmarked for capacity and R&D
The prospectus states that proceeds will primarily upgrade memory wafer production lines and advance DRAM technology. Some funds will support forward-looking research to strengthen its position in the global market.
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CXMT, based in Anhui province, was established in 2016. The company designs and manufactures DRAM products for servers, mobile devices, personal computers, and smart vehicles. Market researcher Omdia ranks it first in China and fourth globally in DRAM production capacity, shipments, and sales.
The global DRAM market is led by Samsung Electronics, SK Hynix, and Micron Technology, with smaller competitors like Nanya Technology and Winbond Electronics also active. The IPO arrives as China aims to reduce dependence on foreign memory chips, a sector affected by U.S. export controls in recent years.
The debut occurs as China’s semiconductor industry faces pressure to achieve self-sufficiency. While the fundraising success indicates investor optimism, matching the technological maturity of international rivals will be difficult.
