ChangXin Memory Technologies, China's leading DRAM memory chipmaker, priced its long-awaited Shanghai initial public offering on Tuesday, paving the way for subscriptions in what is expected to become one of the country's largest semiconductor listings as Beijing accelerates its push for AI chip self-sufficiency.
CXMT is expected to raise 57.9 billion yuan ($8.1 billion) before the greenshoe option is exercised, giving it an implied market capitalization of about 579.2 billion yuan. The deal ranks among the largest semiconductor IPOs ever on Shanghai's STAR Market.
The company set the offer price at 8.66 yuan per share and will open simultaneous online and institutional subscriptions on Thursday, according to its final offering documents.
The pricing values the company at a static price-to-earnings ratio well above industry averages, underscoring investor optimism over China's leading domestic DRAM producer as artificial intelligence fuels a global surge in demand for memory chips.
CXMT plans to issue 6.69 billion new shares, representing about 10 percent of its enlarged share capital. The lead underwriter, China International Capital Corporation, has the option to exercise a 15 percent overallotment, or greenshoe, which would further increase the size of the offering.
