"Shanghai Stock Exchange to Review ChangXin Memory Technologies IPO Next Week"
Caixin Reports Citing Official Announcement on Website
The Shanghai Stock Exchange will begin its review of the initial public offering (IPO) for Chinese memory semiconductor company ChangXin Memory Technologies (CXMT) next week.
According to the Chinese financial media outlet Caixin on May 20, the Shanghai Stock Exchange announced on its website that the Listing Review Committee will hold a review meeting for CXMT on the 27th. The listing review meeting is where the committee examines whether the company meets the issuance, listing, and information disclosure requirements before making a final vote.
After reviewing the committee’s opinion, the exchange will prepare the review documents and submit them to the China Securities Regulatory Commission (CSRC). Upon receiving the documents, the CSRC must complete the registration process and decide on approval within 20 business days.
CXMT is the first ‘pre-review’ project to apply for listing on the Science and Technology Innovation Board (STAR Market, known as Kechuangban) of the Shanghai Stock Exchange. The pre-review targets technology companies working to solve key technological challenges. It allows for a non-public pre-review before the official submission of IPO documents, enabling the completion of the Q&A process in advance. Once officially submitted, the review process accelerates.
The exchange plans to apply a kind of ‘fast track’ to speed up the review process. In fact, CXMT began preparing for listing in July last year and officially submitted its listing documents on December 30. It took about 148 days from that point until the committee review. This period also includes delays due to the expiration of financial documents.
One public fund manager told Caixin, “The company is going through the ‘Hard Tech IPO Green Channel,’” adding, “It’s similar to the speed of Foxconn Industrial Internet (FII). It’s not unreasonably exaggerated.” FII is a Chinese subsidiary of Foxconn listed on the Shanghai Stock Exchange.
Opinions within the industry are divided on whether CXMT will be listed within this year. Some public fund managers predicted that CXMT could enter the capital market by mid-year, or possibly even earlier, according to the outlet.
The company plans to raise 29.5 billion yuan (approximately 6.53 trillion won) through this IPO, investing in next-generation DRAM technology and expanding its production lines. This would be the largest amount raised in the history of the STAR Market.
CXMT, which is being fostered by the Chinese government, is currently the largest DRAM company in China. According to market research firm Omdia, its global DRAM market share was 7.67% in the fourth quarter of last year. It ranks first in China and fourth globally. The combined market share of the three major players—Samsung Electronics, SK hynix, and Micron—exceeds 90%.
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However, a significant technology gap still exists. According to the media, CXMT’s latest DDR5 products have a maximum capacity of 24Gb, which is considered a generation behind the cutting-edge 32Gb products of global competitors like Samsung Electronics, SK hynix, and Micron. U.S. semiconductor equipment export restrictions are also cited as a limiting factor for production capacity expansion.
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