China’s leading memory chipmaker, CXMT Corp, has attracted strong investor interest for its $8.6 billion initial public offering (IPO), with institutional investors subscribing more than 570 times the shares allocated to them, according to a regulatory filing released on Sunday.
Despite the strong response, demand was less intense than that seen in several recent Chinese technology IPOs, reflecting increased caution among investors amid a global sell-off in semiconductor stocks.
Attention is now turning to CXMT’s expected listing later this month on Shanghai’s STAR Market, which is seen as an important test for investor sentiment ahead of several other high-profile IPOs as Beijing continues to pursue technological self-sufficiency in its strategic competition with Washington.
In a statement, CXMT said institutional investors—including mutual funds, pension funds and insurance companies—submitted orders for approximately 1.24 trillion shares, compared with 2.17 billion shares allocated to them in the offering.
The resulting oversubscription ratio of around 570 times indicates robust institutional demand, although it remains below the levels recorded by several recent listings on the STAR Market.