China’s DRAM maker rose as much as 535.45% from its 8.66 yuan IPO price, setting a record STAR Market fundraising and lifting the value of CEO Zhu Yiming’s holdings and staff incentive shares.
Changxin Memory Technologies, also referred to in one source as Changxin Technology, surged on its Shanghai STAR Market debut on July 27, closing up 465.82% at 49 yuan after rising as much as 535.45% intraday from its 8.66 yuan IPO price. Xinhua reported the stock was up 531.06% at 54.65 yuan by the end of the morning session, with turnover reaching 122.1 billion yuan. The Chinese DRAM maker’s IPO was expected to raise more than 66 billion yuan, a record for China’s Sci-Tech Innovation Board. CXMT said it expects first-half operating revenue of 110 billion to 120 billion yuan and net profit attributable to shareholders of its parent company of 50 billion to 57 billion yuan. Bloomberg said the listing lifted CEO Zhu Yiming’s net worth by nearly 300% to $13.9 billion, while 767.9 million shares he pledged to an employee incentive plan were worth about $5.6 billion based on the debut surge. Newer reporting also said public mutual funds were allocated about 1.251 billion shares and private funds 161 million shares, with E Fund Management’s first-day paper gain exceeding 6.8 billion yuan.