HONG KONG (AP) — Shares of CXMT, China’s largest memory chipmaker, soared Monday after they began trading in Shanghai in mainland China’s biggest initial public stock offering in recent years.CXMT’s shares surged 472% and were trading up 462% by early afternoon. It has become the most valuable company listed on a mainland Chinese exchange, with a market capitalization of about 3.3 trillion yuan (more than $487 billion). But its estimated market value is still smaller than those of South Korean and American memory chipmakers like Samsung Electronics, SK Hynix and Micron Technology.CXMT, is among many chipmakers that have profited mightily from the boom in artificial intelligence. Its business is thriving as China pushes for greater self-sufficiency in leading edge technologies while contending with limited access to advanced chipmaking machines due to American-led restrictions.
The company raised at least $8.6 billion with the offering, priced at 8.66 yuan ($1.3) per share, in its listing on the Shanghai Stock Exchange’s Nasdaq-like STAR market, also known as the Science and Technology Innovation Board. It was mainland China’s second largest IPO after the $22.1 billion share offering of Agricultural Bank of China in Shanghai and Hong Kong in 2010.
