Semiconductors▼impact 4
CXMT Poised to Become China's Most Valuable Listed Firm After $9.8 Billion IPO
CXMT Corp. is set to become the biggest China-listed company on its first trading day after raising 66.6 billion yuan in a near-record initial public offering. The company, formerly known as ChangXin Memory Technologies, sold 6.688 billion shares at 8.66 yuan apiece, with the retail portion 212 times oversubscribed as individual investors placed 9.4 million orders worth 7.07 trillion yuan. The IPO price implies 2.4 times book value, a 56% discount to the average price-to-book ratio of global DRAM peers SK Hynix, Micron Technology, and Nanya Technology, and a 77% discount to Chinese chipmakers SMIC and Hua Hong Grace Semiconductor. A perpetual futures contract on the Hyperliquid blockchain tied to the expected share price traded at about five times the offer price, implying a valuation of roughly $428 billion. A gain of around 330% would vault CXMT past Industrial and Commercial Bank of China's 2.6 trillion yuan market value for the top spot, with no daily trading limits during the first week.