CXMT shares surge 470% in Shanghai debut after Asia's biggest IPO this year

Reuters reported that shares of CXMT Corp surged 470% at their Shanghai debut on Monday in Asia's biggest IPO this year, lifting the memory chipmaker to the top of China's stock market by valuation despite a recent selloff in global tech stocks. The stock began trading at 49.50 yuan compared with its sale price of 8.66 yuan per share. The rally in the first few minutes lifted CXMT's market capitalisation to 3.3 trillion yuan ($487.31 billion), up from $85.5 billion during the IPO process, Reuters said. Shares dipped to 38.11 yuan momentarily before recovering and were trading at 49.51 yuan by 0236 GMT. The debut makes CXMT the most valuable company listed in China, overtaking Industrial and Commercial Bank of China, according to the report. CXMT, formerly ChangXin Memory Technologies, raised 57.92 billion yuan ($8.6 billion), with proceeds that could rise to 66.61 billion yuan if an over-allotment option is fully used. At the IPO price, CXMT was valued at about 579 billion yuan ($85.5 billion) before a possible over-allotment exercise, making it one of China's largest listed semiconductor companies, Reuters said. Only 6.73% of enlarged share capital was freely tradable at listing, as most shares are locked up, a small float that could magnify price swings. HSBC Qianhai Securities said in a note last week that the offering could drain liquidity from the wider Chinese market before and on its debut, though past technology listings suggested a rebound could follow the next trading day, according to Reuters.