CXMT targets about $4.3B in Shanghai IPO, not $10B

In short: China’s memory chip maker CXMT is aiming to raise about 29.5 billion yuan, around $4.3 billion, in a Shanghai IPO, not $10 billion.

What happened

CXMT, short for ChangXin Memory Technologies, has filed to list on Shanghai’s STAR Market, a stock market board that focuses on tech companies. Recent filings and reporting put the planned fundraise at about 29.5 billion yuan, or roughly $4.3 to $4.34 billion.

The company plans to sell about 6.688 billion shares, which is around 10% of the company. There is also an optional extra sale called a greenshoe (think of it as a built-in option to sell a bit more if demand is strong). That could increase the total amount raised to a little over $5 billion, still far below $10 billion.

The IPO is moving into its final steps. Reports and exchange schedules say institutional book-building, where big investors indicate how many shares they want and at what price, starts around mid-July. Subscriptions are set for July 16, with payments due by July 20.

Why it matters

CXMT makes DRAM, a type of computer memory that helps devices work with data quickly (like a desk where a computer keeps the papers it is using right now). Fast memory matters for AI systems, especially in data centers that run large AI models. CXMT says the money will go toward expanding and upgrading its chip production, including work on high-bandwidth memory, which is a faster kind of memory used with advanced AI chips.

Source: NYTimes