On Monday, Chinese memory manufacturer CXMT made its initial public offering on Shanghai’s STAR stock market. This debut was the biggest in Asia this year, raising $8.6 billion and seeing shares in the company surge by 466%. In terms of valuation, that places CXMT right at the top of China’s stock market.
CXMT’s market capitalisation is now about $487.73 billion. Major player Tencent still outpaces it at a little over $500 billion, but that makes CXMT’s stock market debut no less show-stealing. In fact, according to Reuters, the memory manufacturer is now a more valuable listed company than even the Industrial and Commercial Bank of China.
Even before this news, CXMT was already one to watch; the company’s plans to massively ramp up DRAM manufacturing capacity in the midst of the RAMpocalypse has made its products an appealing option for a number of PC component makers. Furthermore, recent reports suggest that CXMT is planning to expand overseas into the US market at some point in the future.
CXMT’s rise may be far from unstoppable, though. Trinity Synergy Investments’ hedge fund manager Yuan Yuwei told Reuters, “The stock is too expensive and smells of speculation.”