Chinese DRAM Chipmaker CXMT Sets IPO Price at RMB8.66 Per Share
Chinese DRAM chipmaker CXMT has set its Shanghai STAR Market IPO price at RMB8.66 per share. The company plans to offer 6.69 billion shares.
CXMT, a Chinese manufacturer of DRAM memory chips, has finalized its initial public offering (IPO) price on the Shanghai STAR Market at RMB8.66 (approximately $1.19) per share.
The company intends to offer 6.69 billion shares, with subscription periods for both online and offline investors scheduled for July 16. The offering is projected to raise approximately RMB57.9 billion (around $8.55 billion) before any over-allotment options are exercised. This pricing implies a post-IPO market capitalization for CXMT of roughly RMB579.2 billion (approximately $81.1 billion).
Established in 2016, CXMT designs, develops, and manufactures DRAM chips utilized in mobile phones, personal computers, tablets, servers, and other electronic devices. Its product line encompasses DDR4, DDR5, LPDDR4X, and LPDDR5X memory products, crucial components in modern electronics.
The offer price suggests a 2025 diluted price-to-earnings (P/E) ratio of 308.92 times, according to the company's regulatory filing. This valuation is notably high for the memory chip sector, prompting scrutiny regarding market expectations and the company's future growth prospects.
CXMT's debut on the stock market is viewed as a significant development in China's ongoing efforts to bolster its domestic semiconductor industry and reduce reliance on foreign suppliers.