CXMT Corp made a remarkable stock market debut on the Shanghai Stock Exchange, with its shares surging 470% on the first day of trading.
The strong rally followed Asia’s largest IPO of the year and pushed the chipmaker to the top of China’s stock market by valuation, despite recent weakness in global technology stocks.
The stock opened at 49.50 yuan per share, compared to its IPO price of 8.66 yuan. The sharp rise lifted the company’s market capitalisation to about 3.3 trillion yuan ($487.31 billion), up significantly from its IPO valuation of 579 billion yuan ($85.5 billion). The shares briefly fell to 38.11 yuan before recovering and were trading at 49.51 yuan by 0236 GMT.
The strong debut made CXMT the most valuable listed company in China, overtaking the Industrial and Commercial Bank of China (ICBC), which previously held the top position.
The listing also outperformed the recent debut of China Resources New Energy, whose shares more than doubled after its $3.6 billion IPO earlier this month.
Formerly known as ChangXin Memory Technologies, CXMT raised 57.92 billion yuan ($8.6 billion) through the IPO. The total could increase to 66.61 billion yuan if the over-allotment option is fully exercised. At the IPO price, the company was valued at about 579 billion yuan ($85.5 billion), making it one of China’s largest listed semiconductor companies.
The listing is being closely watched as it reflects investor confidence in China’s semiconductor sector during a period of market volatility caused by an AI-driven technology selloff and a shift in investments between high-growth technology companies and safer sectors.
Only 6.73% of CXMT’s enlarged share capital was available for public trading at the time of listing, while the remaining shares remain locked up. The limited free float could lead to higher price volatility and increased trading activity.
A securities firm noted before the listing that the IPO could temporarily reduce liquidity in the broader Chinese market, although previous technology listings have shown signs of recovery in the following trading session.
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