ChangXin Memory Technologies (CXMT) has secured more than 500 times oversubscription for its $8.6 billion initial public offering, signaling persistent institutional demand despite a broader downturn in chip stocks.
The memory maker’s listing on Shanghai’s STAR Market is expected later this month, following the pricing of shares at 8.66 yuan, which values the deal at approximately $9.8 billion.
Chinese equity markets extended a sharp decline earlier in the week, with benchmark indices falling more than 3% to record their worst weekly performance in over two years.
The strong subscription figures stand in contrast to recent market turbulence.
Chinese equity markets extended a sharp decline earlier in the week, with benchmark indices falling more than 3% to record their worst weekly performance in over two years.
The sell-off was partly triggered by the pricing of the CXMT IPO, which investors viewed as a potential liquidity drain amid already fragile sentiment.
Despite the macro headwinds, the oversubscription ratio suggests that domestic institutional investors remain committed to the semiconductor sector’s strategic importance.