Shares of Chinese memory chipmaker CXMT Corp surged as much as 470% on their trading debut in Shanghai on Monday, making it the biggest IPO success in Asia this year and briefly turning the company into China's most valuable listed firm, according to a Reuters report.
The stock opened at 49.50 yuan, sharply above its IPO price of 8.66 yuan per share. The rally pushed the company's market capitalization to about 3.3 trillion yuan ($487.3 billion), a dramatic jump from its IPO valuation of around $85.5 billion.
After briefly falling to 38.11 yuan, the shares recovered and were trading around 49.51 yuan by 0236 GMT.
According to the report, the sharp gains lifted CXMT, formerly known as ChangXin Memory Technologies, above Industrial and Commercial Bank of China (ICBC) to become the country's largest listed company by market value.
The stock's first-day performance comfortably exceeded the gains seen by China Resources New Energy, whose shares more than doubled following its $3.6 billion IPO earlier this month.
The report stated that the blockbuster listing offers investors an important test of appetite for China's semiconductor sector at a time when global technology stocks have faced pressure following an AI-driven selloff. The debut also comes amid a rotation of investor money between high-growth technology companies and more defensive sectors.
CXMT raised 57.92 billion yuan ($8.6 billion) through the offering, with proceeds potentially increasing to 66.61 billion yuan if the over-allotment option is fully exercised.
At the IPO price, the company was valued at about 579 billion yuan ($85.5 billion), making it one of China's largest listed semiconductor firms even before Monday's rally.
Only 6.73% of the company's enlarged share capital was available for trading at the time of listing, with the majority of shares subject to lock-up restrictions. Reuters noted that the limited free float could amplify price volatility and fuel heavy trading activity.
HSBC Qianhai Securities had said before the listing that the IPO could temporarily drain liquidity from China's broader equity market before and during its debut, although previous technology listings suggest markets often recover in the following trading session, Reuters reported.
