Shares of CXMT, a Chinese DRAM maker, surged about 470% on their Shanghai trading debut, opening at 49.50 yuan compared to the IPO price of 8.66 yuan. The rally pushed the company's market value to roughly 3.3 trillion yuan, making it the most valuable firm listed in mainland China, overtaking Industrial and Commercial Bank of China (ICBC). The IPO raised 57.92 billion yuan ($8.6 billion), the largest in Asia in 2026.
A Frenzied Retail Demand
Only 6.73% of CXMT's enlarged share capital trades freely at listing. Individual investors submitted 9.4 million orders worth 7.07 trillion yuan, oversubscribing the retail tranche 212 times. The retail order book was roughly 10 times larger than SpaceX's, which set the record for the largest IPO ever. That level of demand suggests a speculative frenzy, with many buyers betting on a quick gain in a stock that's hard to get.
Profit Turnaround and Industry Tailwinds
CXMT posted a first-quarter operating profit of 35.43 billion yuan, compared to a loss of 2.83 billion yuan a year earlier. The turnaround comes amid a surge in memory chip prices. Contract prices for conventional DRAM climbed roughly 93% to 98% quarter over quarter in Q1 2026, according to TrendForce. Industry revenue rose 81% over the same period to $97 billion. The company is riding a cyclical upswing that has lifted the entire sector.
Still a Small Player in a Dominated Market
Despite the valuation, CXMT remains the world's fourth-largest DRAM producer with a 7.67% global market share in 2025. Samsung, SK Hynix, and Micron together controlled about 90% of the DRAM market in Q1 2026. The company's ability to scale production and compete with the incumbents will be key. For now, its market cap dwarfs those of its larger rivals, a disconnect that investors will have to reconcile.
The stock's debut price suggests investors are betting heavily on CXMT's growth trajectory, but with only a tiny fraction of shares available for trading, the true market value remains uncertain. The next test will be how the stock holds up as more shares become tradable over time.
