Chipmaker CXMT’s 466% market debut surge makes it the most valuable China-listed company

Shares of chipmaker Changxin Technology Group soared nearly 466% Monday in their debut on Shanghai's tech-heavy STAR Market, making CXMT the most valuable China-listed company.

The Hefei-based firm had raised 57.92 billion yuan ($8.6 billion) after pricing its IPO at 8.66 yuan per share, making it Asia's biggest so far this year.

CXMT shares closed at 49 yuan, giving the company a market cap of about 3.3 trillion yuan, overtaking Industrial and Commercial Bank of China's 2.6 trillion yuan.

Based on sales figures for the fourth quarter of 2025, CXMT held a 7.67% share of the global DRAM market in 2025, according to its IPO prospectus. DRAM chips are used in electronic devices ranging from smartphones to servers.

The global DRAM market is dominated by Samsung Electronics, SK Hynix, and Micron Technology. 

"I have no doubt the company is going to grow to be a global leader. It's maybe just a question of time that it can be not only a challenger, it can be a global champion in this particular sector," said Theodore Shou, CEO at Yiyi Capital on CNBC's "Squawk Box Asia." 

The listing comes at a time when CXMT has seen increased attention, following reports earlier this month that Apple has begun testing the Chinese chipmaker's DRAM for devices sold in China.

CXMT swung to an operating profit of 35.43 billion yuan in the first quarter from a loss of 2.83 billion yuan a year earlier, as it saw continued growth in global computing power demand and capacity allocation by major manufacturers. 

"A 470% performance on day one isn't that rare. What's very prominent in this particular case is a company of this size performing so well," Shou said. In the past, such performance was primarily driven by smaller-cap companies, he said, adding that for CXMT, the relatively limited free float on day one, combined with the built-up market sentiment, were key factors driving the surge.

Morningstar said in a note Friday that as AI is increasingly becoming an issue of national security for China, CXMT will likely be a key beneficiary. The research firm added that while CXMT's technology still lags global memory leaders, domestic internet giants spearheading AI development will likely drive robust adoption of its chips as Beijing pushes for semiconductor self-sufficiency.

CXMT, founded in 2016 by Chairman Zhu Yiming, plans to boost its technological capabilities and core competitiveness, primarily memory wafer mass production and R&D projects, by employing the IPO proceeds, according to a Google translation of the information in the prospectus.

"I think we are nearing a short-term peak in terms of sentiment around the memory cycle," Shou warned, adding that investors have already been selling into the IPO, particularly in China. "These memory chip businesses are sustainable, but the great margins and net profitability we're seeing today are not sustainable and have to normalize over a cycle," he said. 

He also added that while this may not be the peak for share prices, the market is right at the peak of a demand and supply imbalance.