Chinese memory maker CXMT jumps 460%+ in first day of trading
Shares of ChangXin Memory Technologies Inc. closed 466% higher in their trading debut on the Shanghai Stock Exchange today.
The stock jump follows an initial public offering in which CXMT, China’s largest memory maker, sold about 6.8 billion shares for 8.66 yuan apiece. The IPO fetched a total of 57.92 billion yuan, or $8.6 billion. The company’s market capitalization now exceeds $480 billion.
CXMT is the world’s fourth largest producer of DRAM chips with a reported 7.64% market share as of last year. It makes two memory varieties: DDR and LPDDR. The former technology is commonly found in desktops and servers, while LPDDR is geared towards battery-powered devices such as smartphones. They’re both based on the same basic architecture.
A DRAM chip is made of building blocks called memory cells. Each cell contains a transistor and a tiny battery called a capacitor. The capacitor’s charged state represents 1, while its uncharged state corresponds to 0. The integrated transistor acts as a kind of dam that manages the flow of electricity to the capacitor.
