Changxin Memory IPO Success, Expected to Raise Up to 15 Trillion Won

Chinese memory semiconductor company ChangXin Memory Technologies (CXMT) has drawn greater institutional investment demand than the market expected ahead of its listing on the Shanghai STAR Market. This offering is understood to reflect the trend of rising demand for memory semiconductors driven by the spread of AI data centers and physical AI. According to a filing by the Shanghai Stock Exchange, 285 institutions participated in the institutional demand forecast, placing orders through 10,907 accounts, and the volume reached about 462.9 times the allocated amount. As a result, the offering price was set at 8.66 yuan per share, about twice the market estimate of 4.4 yuan. The total offering amount, excluding the overallotment option, is expected to be about 57.9 billion yuan, and the market capitalization after listing is projected at about 579.2 billion yuan. If the overallotment option is fully exercised, the amount raised will increase to as much as 66.6 billion yuan, more than twice the original plan. The general and institutional subscription is scheduled for the 16th, and the listing for the 27th. The industry believes the funds will likely be used for advancing generalpurpose DRAM and developing HBM. However, experts say the shortterm impact may be limited, but if CXMT's facility investments and yield improvements accelerate, the global DRAM competitive landscape could become even more intense in the medium to long term.