CXMT Wins Approval for Shanghai STAR Market IPO

China’s top securities regulator has approved the initial public offering registration of CXMT Corporation, the country’s largest producer of dynamic random-access memory, or DRAM.

The China Securities Regulatory Commission said on Friday that CXMT has been approved for listing on the Shanghai Stock Exchange’s science and technology innovation board, commonly known as the STAR Market.

According to the company’s prospectus, CXMT was established in 2016 and has become China’s largest and most technologically advanced enterprise focused on the research, development, design and manufacturing of DRAM products.

The company plans to raise 29.5 billion yuan, or about 4.33 billion U.S. dollars, through the offering. If completed as planned, it would become the second-largest IPO in the history of the STAR Market and the largest IPO on China’s A-share market this year.

The STAR Market was launched in June 2019 to support companies in high-tech and strategic emerging industries. It has more flexible listing criteria than traditional boards, while maintaining stricter requirements for information disclosure.

The approval of CXMT’s IPO is seen as an important step for China’s semiconductor and memory-chip industry, as the country seeks to strengthen domestic high-tech manufacturing capacity and attract more investment into strategic technology sectors.