China’s Changxin Memory aims for $14.5b valuation in Shanghai IPO: report

China’s Changxin Memory Technologies Inc plans to file for a domestic initial public offering that could value the memory chip maker at more than $14.5 billion, Bloomberg News reported on Thursday.

CXMT plans to list on Shanghai’s Nasdaq-style STAR board this year, the report said, citing people familiar with the matter, adding that the company is in the process of picking underwriters and has not yet finalised the size of the IPO. CXMT did not immediately respond to a Reuters request for comment.

The company, owned by state-backed parent Innotron Memory Co, makes chips that temporarily store data on phones, computers, servers, virtual reality and the Internet of Things.

Chip maker GigaDevice Semiconductor Inc and a fund indirectly controlled by Lei Jun, the billionaire founder of Xiaomi Corp, hold shares in Innotron, Bloomberg said, citing Tianyancha, a company registration information provider.

CXMT’s IPO plans come as the United States curbs exports of chip-making equipment to China, requiring licences for US companies to export advanced chips and chip-making equipment in a bid to slow China’s technological advance.

Last year, the US Congress passed the CHIPS Act to subsidise the domestic semiconductor industry and keep ahead of China in global markets

Reuters

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