The story

Shares of CXMT Corp., China's largest maker of DRAM memory chips, surged as much as 535% in their debut in Shanghai on Monday, closing 466% higher. The company, previously known as ChangXin Memory Technologies, raised $8.6 billion with proceeds potentially rising to $9.8 billion if an overallotment option is fully exercised. It was China's second-largest mainland IPO on record, behind Agricultural Bank of China's 2010 offering.

At the opening price of 49.50 yuan, compared with an IPO price of 8.66 yuan, CXMT was valued at about $487 billion. That made it the most valuable company listed on China's mainland market, overtaking Industrial and Commercial Bank of China. Demand for the offering was exceptionally strong, with the retail portion 212 times oversubscribed. Founded in 2016 in Hefei, CXMT is the world's fourth-largest producer of DRAM chips, behind Samsung Electronics, SK Hynix, and Micron Technology.

The company's revenue surged to $7.5 billion in the first three months of 2026, a more than 700% rise year-on-year. Nomura initiated coverage with a Buy rating and a 116 yuan price target, expecting CXMT's share of global DRAM production to rise from about 10% currently to roughly 18% by the end of 2028. Risks include rising geopolitical tensions between the US and China, weaker customer demand, greater domestic competition, and component shortages, according to Nomura analysts.