Until this year, few outside China had heard of ChangXin Memory Technologies. But now a lot of spotlights have turned on her as Monday, with the acronym of Cxmt Corp, his actions will start to be negotiated at Shanghai after raising 57,92 billion yuan (US$8,6 billion) in Asia's largest initial public offering (IPO) so far this year.
Stamane al debutto il prezzo dell’azione è schizzato del 500%. Il rally valuta la società oltre 530 miliardi di dollari, superando la capitalizzazione di mercato di Intel (465 miliardi e quella di Industrial and Commercial Bank of China, la ex più grande società quotata in Cina per valore.
The society, led by Zhu Yiming, a US-trained chip industry veteran, said it sold 6,69 billion shares at 8,66 yuan each, and that the proceeds could rise to 66,61 billion yuan if the over-allotment option is exercised in full. The over-allotment option allows the underwriters to sell additional shares if demand is strong.
The company has established itself as one of the semiconductor manufacturers world's largest, poised to revolutionize the market for DRAM memory chips used in computers, smartphones, servers, and artificial intelligence systems, with a combined value of $1.000 trillion. The company is poised to accelerate its Beijing's ambitions in the field of artificial intelligence and has become the best option for China to end addiction from foreign memory chips at a time of severe shortage.
Cxmt, goal: to create the entire chip supply chain internally
I proceeds proceeds from the IPO will help Cxmt finance a ambitious expansion planThe goal is to double production this year and build the entire plant in-house. complete supply chain, from chip design to final assembly, the complex work of stacking and connecting the chips, without having to rely on other external parties as it is already doing NvidiaOn the horizon there is the project of a Chinese memory chip empire able to compete with those of stock market giants such as Sk Hynix, Samsung Electronics and Micron TechnologyThis morning on the Asian markets, many analysts saw the sell-off in South Korean stocks as a sign of investors' need to make space to accommodate the new listed company.
Investors are looking at the stock market debut CXMT as a potential stimulus to revive the stalled rally in Chinese semiconductor stocks. The Star 50 Index, heavily influenced by the semiconductor sector, entered a bear market this month ahead of the IPO. Cxmt valuation of $86 billion, despite being the largest chip IPO ever in China, is worth approximately a tenth than that of its major competitor Sk Hynix.
Il IPO price, equal to 8,66 yuan, implies a multiple of 2,4 times higher the book value: this is one 56% Off compared to the price/book value ratio middle finger of major global DRAM manufacturers such as SK Hynix, Micron Technology and Nanya Technology, according to Bloomberg intelligence. It represents one even bigger discount, equal to 77%, compared to the average of Chinese chipmakers Semiconductor Manufacturing International and Hua Hong Grace Semiconductor.
Analysts say the valuation leaves plenty of room for margins for growth and that the title will have a good performance, considering that the IPO was oversubscribed hundreds of times and that the prices on the Star market do not provide for daily percentage limits for the first five trading sessions. Given the strong state support At Cxmt, a strong rally could also have a positive effect on other local semiconductor stocks. “If the market were to rise by 500%, I wouldn't be surprised, because that would probably be a bearish estimate,” he said. Bloomberg Bush Chu, investment manager at Aberdeen Investments, said: “I remain extremely bullish on Chinese hardware overall, especially the semiconductor localization pipeline.”
Il memory sector It is among the most closely watched as there is a huge demand for it for data centers worldwide, but supply is still insufficient. Its debut also comes after strong gains in chipmaker shares in mainland China, thanks to an influx of investors into companies benefiting from AI spending by Chinese tech giants, including Alibaba Group e Tencent Holdings Ltd.
Chinese government support
The launch will mark a major milestone for China's state-funding model, highlighting how public capital can transform a strategic tech startup into a key global player and generate huge profits in the process. Beijing is supporting the entire value chain in an effort to compete with the United States in the technology sector. “CXMT's major shareholders are government-backed investors, which ensures its share price will remain on an upward trajectory,” said Shen Meng, director of Beijing-based investment bank Chanson & Co. “If the stock opens with strong and sustained gains, its ability to drive the entire domestic hardware sector will be very significant.”
The company was founded in 2016 by an investment vehicle under the Hefei Economic and Technological Development Zone in Hefei, capital of Anhui Province in eastern China, with an initial funding of just 10 million yuan ($1,5 million). Nearly a decade later, the government-linked investors They hold 36,8% of CXMT, making them the majority shareholders. At the IPO price, this stake is worth approximately 213 billion yuan ($31,5 billion), according to an analysis of company documents by Reuters. This gain could grow exponentially, with analysts predicting a multi-fold increase in the value of CXMT shares upon their stock market debut.
The Pentagon has blacklisted her
While the company's technological expertise has pushed giants like Apple to evaluate the purchase of its chips, on the other hand the growing notoriety of Cxmt is also attracting unwanted attention. The Pentagon he entered the company, supported by the state, blacklisted for alleged collaboration with the Chinese army. In South Korea, Prosecutors have accused several former Samsung employees of disclosing confidential information to Cxmt.
