#CXMTDebutsWith90.1BTradingVolume

Chinese chipmaker CXMT’s shares rose by more than 500% on their first day of trading on the stock exchange.
Chinese memory chipmaker CXMT’s shares gained more than 500% on their first trading day in Shanghai, as the company moved up to become China’s most valuable publicly listed company with a market capitalization of 3.65 trillion yuan. With its 57.9 billion yuan initial public offering, CXMT carried out the largest IPO on the Chinese mainland since 2010.
CXMT’s shares surged sharply on their first trading day in Shanghai, supported by strong growth in investor interest amid a rapid rise in demand for AI-driven memory chips.
According to a report published today in the British Financial Times, the share price set at 8.66 yuan for the IPO started trading on Monday at 49.50 yuan. The shares rose to as high as 54.65 yuan during afternoon trading.
CHINA’S MOST VALUABLE COMPANY
With the jump, CXMT’s market capitalization reached 3.65 trillion yuan ($539 billion). In doing so, the company surpassed Tencent, which is traded in Hong Kong and is valued at around $514 billion, becoming China’s most valuable publicly listed company.
Tilly Zhang, a technology and industrial policy analyst at Beijing-based Gavekal Dragonomics, said that while it was expected that the IPO would be large, the intense level of investor interest was still surprising.
THE BIGGEST IPO SINCE 2010
CXMT, which produces DRAM memory chips used in many devices from servers to cameras, is positioned as the world’s fourth-largest DRAM manufacturer after SK Hynix, Samsung Electronics, and Micron.
The company’s IPO was in the spotlight as investors closely watched a period in which high demand driven by AI applications led to a squeeze in the global memory chip supply.
As part of the IPO, CXMT sold 6.7 billion shares to generate 57.9 billion yuan ($8.5 billion) in revenue. This amount was the largest IPO carried out on the Chinese mainland since China Construction Bank’s IPO in 2010.