Can China’s flash memory giant YMTC smash Shanghai Star Market IPO records?
China is gearing up for what could become its next record-breaking semiconductor stock listing as the parent company of chip giant Yangtze Memory Technologies Corporation (YMTC) prepares to go public on Shanghai’s Star Market. CCSH Corporation, parent of China’s top NAND flash maker, planned to sell between 1.98 billion and 2.43 billion shares, equivalent to 10 to 12 per cent of its enlarged…
China's leading NAND flash manufacturer, Yangtze Memory Technologies Corporation (YMTC), is set to make its debut on Shanghai's Star Market, potentially breaking IPO records. The parent company, CCSH Corporation, plans to issue between 1.98 billion and 2.43 billion shares, representing 10 to 12 percent of its expanded share capital.
An overallotment option of up to 15 percent could also be used. CCSH has allocated 33 billion yuan (approximately US$4.9 billion) for investment projects, with 20.8 billion yuan towards upgrading mass-production lines and 12.2 billion yuan for research and development. If successful, YMTC's float could surpass the 33 billion yuan target set for Changxin Memory Technologies (CXMT), China's leading DRAM maker.
CXMT's initial public offering in July raised 66.6 billion yuan, becoming the largest Star Market IPO on record. The back-to-back listings will provide mainland investors with direct equity access to China's top memory producers at a time of soaring memory prices and profitability, fueled by tight global supply and artificial intelligence demand.
YMTC's impressive earnings growth has been driven by the ongoing NAND shortage, with the company's NAND revenue increasing 393 percent year-on-year in the first quarter, pushing gross margins to 78.7 percent from 36.7 percent last year.
Written by urgent.news from SCMP Tech's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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