Mentioned:
SKHY -9.15% MU -5.14% BABA +2.10%

One of the largest producers of DRAM in the world is officially a publicly traded company in China.

What’s happening:

  • CXMT has successfully raised $8.6B USD in a new IPO financing round and has become a publicly listed company on the Shanghai Stock Exchange

By the numbers:

  • CXMT’s IPO financing round gave them a valuation of approximately $85.5B USD

Why it matters:

  • CXMT is the single largest memory chip producer in China and is the fourth largest manufacturer of DRAM behind Samsung, SK hynix (NASDAQ: SKHY) and Micron (NASDAQ: MU)

Going deeper:

  • Alibaba (NYSE: BABA), ByteDance and Tencent are all existing customers of CXMT’s DRAM chips and memory hardware
  • CXMT has publicly stated that they will use the new growth capital from their IPO financing round to accelerate DRAM production capacity expansion and fund research and development of next generation memory chips to support artificial intelligence workloads

Market reaction:

  • Shares of CXMT surged by more than +450% in their first day of trading