CXMT's Mega IPO Sparks Frenzy Among Retail Investors, AI Fund

ChangXin Memory Technologies (CXMT) launched its initial public offering on Shanghai's Star Market on Thursday, drawing intense demand from both professional and amateur investors. The memory-chip maker is issuing approximately 6.69 billion shares, expecting to raise gross proceeds of 57.9 billion yuan (US$8.56 billion). If the 15% overallotment option is fully exercised, proceeds could rise to 66.6 billion yuan.

Luo Yi, a 60-year-old stock investor from Sichuan province, applied for 86,000 shares despite admitting she knows little about the semiconductor industry. She was encouraged by her securities account manager, who said the unusually large share sale could yield a higher allotment rate than most Chinese mainland IPOs. Kevin Chen, a 35-year-old state-owned enterprise employee in Shanghai, also subscribed, noting that winning an allocation in A-share IPOs typically means making money.

Some brokerage valuations suggest CXMT's market capitalization could reach as high as 3 trillion yuan after listing, implying a gain of about 36 yuan per share, or more than four times the IPO price of 8.66 yuan. That would represent a 1.4% yield on the original price.

The frenzy reflects investor bets on China's memory chip champion amid the artificial intelligence boom. The DeepSeek founder's fund was also among subscribers, underscoring the strong interest from tech-focused investors.