Changxin Technology Surges About 500% on Shanghai Debut, Market Cap Tops 3.3 Trillion Yuan
Changxin Technology surged about 500% on its Shanghai STAR Market debut on July 27, giving it a market value exceeding 3.3 trillion yuan. The chipmaker priced its IPO at 8.66 yuan per share and raised about 57.9 billion yuan, making it the largest A-share IPO this year and the biggest ever on the STAR Market. On the same day, the CSI 300 and Shanghai Composite indices rose about 0.5%, recovering from early losses, though they remain down more than 6% for the month.
Changxin Technology listed on the Shanghai Stock Exchange's STAR Market on July 27, with its shares surging about 500% on the first day, pushing its market value above 3.3 trillion yuan. The company priced its initial public offering at 8.66 yuan per share, giving it an issue market capitalization of more than 579 billion yuan. It raised approximately 57.9 billion yuan (before the full exercise of the over-allotment option), making it the largest IPO in the A-share market this year and the biggest ever on the STAR Market.
On the same day, the CSI 300 Index and the Shanghai Composite Index both rose about 0.5% in morning trading, reversing early losses. China's benchmark indices have fallen more than 6% this month. Selling in small-cap and technology stocks has been particularly intense, driven by an escalation of the Iran conflict, deleveraging in South Korea's stock market, and a rush by domestic quantitative funds to exit positions.
As fund managers adjusted their portfolios to make room for the new Changxin Technology shares, the chip manufacturing and semiconductor sectors declined. Meanwhile, an index tracking stocks of chip-making materials and equipment companies rose.