By Blessing Nweke
Shares of China’s largest memory chip manufacturer, CXMT, surged more than 470% on their first day of trading on the Shanghai Stock Exchange’s technology-focused STAR Market, propelling the company to a market valuation of about 3.3 trillion yuan ($487.3 billion).
The remarkable debut makes CXMT the most valuable listed company in mainland China and comes despite a recent global selloff in technology stocks that has weighed on semiconductor companies worldwide.
Founded in 2016 by Chairman Zhu Yiming and headquartered in Hefei, Anhui Province, CXMT produces dynamic random-access memory (DRAM) chips used in artificial intelligence data centers, smartphones, personal computers, tablets, and a range of other electronic devices. The company said it plans to use the majority of the funds raised through its initial public offering to expand memory chip production and strengthen research and development efforts.
The successful listing is expected to provide a boost for Chinese financial authorities, who have introduced measures to stabilize the country’s stock market after more than $1.5 trillion in market value was erased during recent declines.
Globally, the DRAM industry remains dominated by South Korea’s Samsung Electronics and SK Hynix, along with U.S.-based Micron, which together account for roughly 90% of worldwide production.
Earlier this month, SK Hynix completed a record-breaking $26.5 billion share offering in New York, the largest U.S. listing ever by a foreign company. The AI memory chip supplier to Nvidia sold nearly 178 million American depositary shares at $149 each. Its shares jumped as much as 17% during their Nasdaq debut before easing, while the company’s market capitalization surpassed $1 trillion in South Korea earlier this year amid booming demand for AI-related semiconductor technology.
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