China's largest DRAM manufacturer, CXMT (Changxin Memory Technologies), made its debut on the Shanghai Stock Exchange on July 27, 2026, and immediately became the top company by market capitalization in mainland China.
CXMT (688825.SH) was listed on the STAR Market, issuing 6.688 billion new shares at an initial price of 8.66 yuan, raising 57.9 billion yuan (approximately $12.6 billion). If the overallotment option is fully exercised within a month, the total fundraising could reach up to 66.6 billion yuan (about $14.4 billion). Market analysts expect the overallotment option to be fully utilized.
After opening, CXMT's stock price surged to 49.88 yuan. On the STAR Market, there are no restrictions on price fluctuations during the first five trading days. The stock reached an intraday high of 55.03 yuan before closing at 49.00 yuan, marking a 465.8% increase from the initial offering price.
At the closing price, CXMT's market capitalization stood at 3.28 trillion yuan, surpassing the previous leader, Industrial and Commercial Bank of China (ICBC), which had a market cap of 2.76 trillion yuan, thus claiming the top spot in mainland China's market.
This IPO is the largest in Asia this year and ranks as the second-largest for a Chinese semiconductor company, following the Agricultural Bank of China's $10 billion IPO in 2010. On its first day, CXMT recorded a trading volume of 141.2 billion yuan, the highest ever for a single stock in the Chinese market.
CXMT Plans to Invest 27 Trillion Won in HBM
CXMT aims to raise up to 66.6 billion yuan through this IPO. Additionally, the company is projected to report a net profit of 57 billion yuan for the first half of the year. Combining the IPO proceeds and the expected net profit, CXMT will have approximately 123.6 billion yuan in cash, equivalent to about 27 trillion won, most of which is expected to be invested in HBM technology.
In its prospectus, CXMT stated that the funds raised will be used to expand production capacity and enhance research and development. However, no specific investment plans were disclosed. Industry insiders believe that a significant portion of the R&D investment will focus on HBM, AI DRAM, and advanced packaging, as HBM is currently the most critical memory type needed in China.
CXMT began developing HBM in 2023 and plans to start mass production of 4-layer HBM2 in 2024, with an aim to produce 8-layer HBM3 by the end of this year. According to Taiwanese IT publication DigiTimes, CXMT has set a goal to produce 12-layer HBM3E next year.
Technology Gap with SK Hynix Estimated at 4 Years, May Narrow
SK Hynix has started mass production of HBM4 this year, while CXMT is preparing for HBM3 production, indicating a current technology gap of about four years between the two companies. Analysts from Chinese securities firms believe that with substantial cash reserves, government support, and explosive demand from Chinese AI companies, CXMT's technological capabilities could advance significantly. There are even forecasts that the technology gap with SK Hynix could narrow to two years.
Last year, CXMT recorded revenues of 61.7 billion yuan and a net profit of 7.1 billion yuan, marking its first annual profit since its establishment. In the first quarter of this year, the company reported revenues of 50.8 billion yuan and a remarkable net profit of 33 billion yuan. The net profit for the first half of this year is expected to reach 57 billion yuan.
* This article has been translated by AI.
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