CXMT Corporation, parent of Chinese memory chip giant ChangXin Memory Technologies (CXMT), aims to raise 29.5 billion yuan (US$4.2 billion) from an initial public offering in Shanghai to fund technology upgrades, as Beijing presses ahead with its drive for tech self-reliance amid geopolitical tensions.
The Shanghai Stock Exchange received CXMT’s application for a listing on the Nasdaq-style Star Market, a filing on the bourse’s website showed on Tuesday night. This marks a critical step towards a listing for China’s largest dynamic random-access memory (DRAM) designer and manufacturer.
The company planned to issue no more than 10.62 billion new shares, the filing said.
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In terms of fundraising scale, CXMT’s IPO is set to become the second-largest on the Star Market since its launch in 2019, trailing only the 53.2 billion yuan raised by chip foundry Semiconductor Manufacturing International Corporation’s listing in 2020.
CXMT’s listing is also notable as the first “pre-review” project to be accepted on the Star Market. On the same day its prospectus was received, the bourse disclosed two rounds of pre-review inquiries and responses conducted in November.
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