Home / Business and Economy / CXMT IPO: Asia's Biggest, Eyes AI Demand
CXMT IPO: Asia's Biggest, Eyes AI Demand
27 Jul
Summary
- CXMT's IPO is Asia's largest this year, raising $8.6 billion.
- The chipmaker is valued at $85.5 billion, one of China's largest.
- CXMT's DRAM chips are crucial for phones, computers, and servers.
Shares of CXMT Corp are scheduled to commence trading in Shanghai on Monday, marking Asia's largest Initial Public Offering of the year. The Chinese chip manufacturer raised 57.92 billion yuan ($8.6 billion) through its IPO, with an offering price of 8.66 yuan per share. This valuation places CXMT at approximately 579 billion yuan ($85.5 billion), establishing it as one of China's most significant listed semiconductor companies.
CXMT, formally known as ChangXin Memory Technologies, produces DRAM chips, a fundamental component for smartphones, computers, and servers. The company ranks as the fourth-largest global DRAM manufacturer. Its record-breaking IPO surpasses SMIC's 2020 Shanghai share sale. Despite technology gaps with global leaders, CXMT is poised to capitalize on increasing domestic AI demand.
The company anticipates a substantial revenue increase, with first-half earnings projected to rise more than sevenfold. It expects net profits in the range of 66 billion to 75 billion yuan, a significant turnaround from a prior year's loss. This performance is bolstered by recent AI-driven demand for DRAM, though market stability hinges on continued AI investment and supply management by competitors.
