Chipmaker CXMT seeks $10bn in largest China IPO since 2010
Chinese group capitalises on boom in demand for AI memory chips
CXMT is seeking to raise nearly $10bn in mainland China’s largest initial public offering since 2010 as the Chinese chipmaker capitalises on a boom in demand for AI memory chips.
The company hopes to bring in Rmb66.6bn ($9.8bn) in a listing that would value the company at Rmb579.2bn, according to a filing to the Shanghai Stock Exchange on Tuesday.
The IPO marks the biggest in mainland China since the Agricultural Bank of China’s listing in 2010. It comes shortly after SK Hynix’s blockbuster US listing raised more than $26bn.
Shihao Li, a mainland China equities strategist at Citic CLSA, said the IPO could cause a “short-term liquidity drain”, particularly for other shares listed on Shanghai’s tech-focused Star Market.
CXMT is raising money to expand production as well as research and development of DRam chips, which store short-term memory in computers. High demand for DRam chips from AI companies has created a supply squeeze, especially for consumer electronics makers.
The FT reported last month that Apple was lobbying the US for clearance to buy memory chips from CXMT, which the Pentagon has blacklisted because of alleged connections to the People’s Liberation Army.
YMTC, another Chinese chipmaker with plans to list, makes Nand chips, used for longer-term memory storage, amid surging demand from providers of AI agents and chatbots.
The listing plans are the latest sign of a revival for Chinese capital markets after a years-long slump in new offerings.
Mainland Chinese IPOs have raised Rmb198bn this year, more than 2025’s total and the largest amount since 2023.
CXMT will issue 6.6mn shares priced at Rmb8.66, with an overallotment option of 1mn shares.
The chipmaker reported a net profit of Rmb33bn in the first quarter this year, according to its IPO prospectus, a record driven by rising memory chip prices.
CXMT’s price-to-earnings ratio based on its 2025 earnings would be more than 300 times before exercise of the overallotment option.
The listing date has not been fixed, but investor subscriptions will take place on Thursday.