Changxin Technology Jumps 465.82% in Record STAR Market IPO, Market Cap at RMB 3.28 Trillion
Changxin Technology surged 465.82% on its STAR Market debut, closing at RMB 49 with a market capitalisation of RMB 3.28 trillion, overtaking ICBC to become A-shares’ largest stock by value. Full-day turnover hit a record RMB 141.1 billion. The IPO, the largest in the STAR Market’s history, attracted 9.43 million investors for a 0.4714% allocation rate. Employee share plans priced at RMB 0.1 created over 200 millionaires on the first day. Strategic investors Country Garden, Hefei state-owned capital and Alibaba affiliates notched paper gains of tens of billions to over a trillion yuan.
Changxin Technology listed on the STAR Market at an issue price of RMB 8.66 per share. It opened at RMB 49.5, up 471.59%. During the session it hit a high of RMB 55.03, bringing its intraday market cap to about RMB 3.66 trillion. The stock closed at RMB 49, a gain of 465.82%, with a total market capitalisation of roughly RMB 3.28 trillion, overtaking ICBC as the largest stock by market cap in the A-share market. Full-day turnover reached RMB 141.1 billion, a new single-stock single-day record for A-shares. The IPO was the largest in the STAR Market’s history, attracting 9.4288 million investors to the new-share lottery, with a win rate of 0.4714% — also a STAR Market record.
Before the listing, Changxin carried out two employee stock ownership plans covering a cumulative 6,760 participants. The second plan priced shares at just RMB 0.1 apiece. On the debut day, the plan created more than two hundred millionaires within the company.
In 2021, Country Garden invested RMB 2 billion for a roughly 1.56% stake in Changxin. By the end of 2024, Country Garden sold the entire stake to Hefei state-owned funds at RMB 2.22 per share, recovering its RMB 2 billion cost. After Changxin’s listing, that stake was worth about RMB 42 billion. Over the past decade, Hefei state-owned funds have poured about RMB 24.8 billion into Changxin in total; based on the closing market cap, the paper gain exceeded RMB 1 trillion. Alibaba affiliates participated in 2022 and invested RMB 6.1 billion in the final pre-IPO funding round, bringing their total holding to 4.97%, with a floating profit of more than RMB 150 billion.
Changxin’s listing P/E ratio was 308 times, while the memory industry’s average P/E over the past month was around 76 times. The company is currently transitioning its main manufacturing process to 1a, while Samsung, SK Hynix and Micron have already moved to 1c. Lacking EUV lithography tools, Changxin uses DUV multi-patterning, which results in higher costs. SemiAnalysis estimates that the yield rate on Changxin’s HBM production line is 25%, compared with 70% to 90% at overseas giants. In March this year, Changxin started building a super-fab in Lingang, Shanghai — a site roughly two to three times the size of its Hefei headquarters — focused on HBM. Optimistic outside forecasts see the plant capturing 12% of global HBM capacity by 2028.