China's CXMT eyes $4.2 billion Shanghai listing to fund DRAM expansion

Company Overview - ChangXin Memory Technologies (CXMT) plans to raise 29.5 billion yuan ($4.22 billion) through an initial public offering of 10.6 billion shares in Shanghai [1] - Founded in 2016 with state backing, CXMT aims to establish a presence in the global DRAM market, which is currently dominated by South Korea's Samsung Electronics and SK Hynix, and U.S.-based Micron Technology [2] Market Position - CXMT held a 4% share of the global DRAM market in Q2, while Micron, SK Hynix, and Samsung together controlled over 90% [3] - The company operates three 12-inch DRAM fabrication plants located in Beijing and Hefei [3] Product Development and Future Plans - CXMT is investing in high-bandwidth memory (HBM), essential for advanced processors, with production expected to start by the end of 2026 at a new facility in Shanghai [4] - The company anticipates a revenue increase of up to 140% year-on-year in 2025, driven by rising memory prices and higher sales volumes [4] Financial Performance - CXMT projects potential profitability by 2026, following losses of 8.32 billion yuan in 2022, 16.3 billion yuan in 2023, and 7.1 billion yuan in 2024 [5] - The company reported a loss of 2.3 billion yuan in the first half of the current year [5]