Asia’s biggest IPO created a stir, shares jumped 500% on the first day; CXMT becomes China’s most valuable company

Knews Desk- China memory chip manufacturer CXMT Corp Made a great debut in the stock market and created a new history in Asia’s largest IPO. on monday Shanghai Stock Exchange But on the very first day of listing the shares of the company More than 500 percent increase Was recorded. After this tremendous surge, the market capitalization of the company is around 3.65 trillion yuan (about $539 billion) reached and in terms of market value ICBC (Industrial and Commercial Bank of China) Left behind too.

The company sold its shares in IPO 8.66 yuan per share were issued at a price of Rs, but the share price increased during trading 54.65 yuan Reached. Estimated valuation of the company before listing is around 85.5 billion dollars Which increased manifold after the first day’s rise.

Amidst the ever-increasing restrictions on advanced semiconductor technology from the US, CXMT is being considered an important part of China’s domestic chip manufacturing strategy. The company aims to reduce dependence on foreign technology and suppliers. especially AI data centers used in High-bandwidth memory (HBM) This is being considered as China’s biggest hope in technology.

Raised 66.6 billion yuan from IPO

CXMT through its IPO 66.6 billion yuan (about 9.8 billion dollars) Gathered. This is from the history of China Second largest IPO Is. before this Agricultural Bank of China In the year 2010 around 10 billion dollars Had brought a record IPO of Rs. the company has 6.688 billion shares Were offered to investors.

This IPO got excellent support from investors. The portion issued for retail investors 212 times more subscription found. close to 9.4 million applications came, whose total value 7.07 trillion yuan doing. This is believed to be the strongest investor response to any major Chinese IPO in recent years.

Benefited from increasing demand for AI sector

CXMT currently Dynamic Random Access Memory (DRAM) It is the world’s fourth largest chip manufacturing company. Due to the increasing demand for Artificial Intelligence (AI) and data center related technologies, investors placed big bets on the company. Experts believe that the role of CXMT in China’s semiconductor industry may become stronger in the coming times.