ChangXin Memory Technologies (CXMT), a leading Chinese memory chipmaker based in Hefei, Anhui province, has priced its initial public offering (IPO) on Shanghai’s Star Market at 8.66 yuan (US$1.28) per share. The offering, announced on Tuesday, involves the sale of nearly 6.7 billion shares, expected to raise gross proceeds of 57.9 billion yuan (US$8.5 billion).

The shares represent 10% of CXMT’s enlarged capital, implying a company valuation of 579 billion yuan (US$85.2 billion) upon listing. If the 15% overallotment option is fully exercised, the offering could expand to 7.7 billion shares, raising up to 66.6 billion yuan (US$9.83 billion).

Online and offline subscriptions are scheduled for Thursday, though CXMT has not yet announced the trading debut date.

This fundraising amount nearly doubles the 29.5 billion yuan CXMT had initially earmarked for investment projects in its prospectus. The IPO is set to surpass the 2020 Shanghai listing of Semiconductor Manufacturing International Corporation, which raised 53.23 billion yuan, making CXMT’s offering the largest A-share IPO by a Chinese semiconductor company.

Sources