CXMT's maximum fundraising reaches 66.6 billion yuan, with a maximum issued market value of 588 billion yuan
On the evening of July 14, Changxin Technology released its listing and issuance announcement for the Sci-Tech Innovation Board. According to the announcement, the total number of shares issued in this offering is 6.688 billion, accounting for approximately 10.00% of the total share capital after issuance. The offering price is set at ¥8.66 per share, with an estimated total raised capital of around ¥57.919 billion, and the net proceeds after deducting issuance expenses will be approximately ¥57.638 billion. The company has also granted China International Capital Corporation Limited an over-allotment option covering no more than 15.00% of the initial offered shares. If the over-allotment option is exercised in full, the total estimated raised capital will reach approximately ¥66.607 billion, with the net proceeds after issuance expenses estimated at around ¥66.310 billion.
Based on the issuance of 6.688 billion shares, the total amount of capital raised by Changxin Technology in this offering has significantly exceeded the originally planned ¥29.5 billion for investment projects outlined in the previous prospectus, with an over-raised amount of nearly ¥30 billion. The total raised capital of ¥57.919 billion has also allowed Changxin Technology to surpass Semiconductor Manufacturing International Corporation, which listed in July 2020, making it the largest IPO (Initial Public Offering) in the history of the Sci-Tech Innovation Board, as well as the largest tech stock IPO in the history of the A-share market. Meanwhile, this total raised capital also ranks fifth in the A-share market's historical rankings, coming after Agricultural Bank of China, PetroChina, China Shenhua, and China Construction Bank.
According to the subscription schedule, Changxin Technology will conduct online and offline subscriptions on July 16. The securities code and offline subscription code are "688825", while the online subscription code is "787825". No upfront subscription funds are required at the time of subscription, and investors who meet the transaction eligibility criteria for the Sci-Tech Innovation Board can participate in the new share subscription. July 20 (T+2 day) is the payment deadline for both online and offline subscriptions.
It is worth noting that according to the announcement, the total share capital of Changxin Technology after this issuance will be approximately 66.88 billion shares (before the exercise of the over-allotment option). Calculated at the offering price of ¥8.66 per share, the offering market capitalization of Changxin Technology is around ¥579.2 billion. If the over-allotment portion is fully exercised, the total share capital after issuance will reach 67.9 billion shares, and the offering market capitalization will hit ¥588 billion.
Based on previous market assessments, following Changxin Technology's current profit trend, its post-IPO market capitalization is likely to reach at least the ¥1 trillion to ¥2 trillion level. Some institutions have estimated that, based on a 2026 attributable net profit of ¥150 billion to ¥200 billion and a 20x price-to-earnings ratio, Changxin Technology's market capitalization is expected to exceed ¥3 trillion, and some institutional analysts have even given valuations above ¥4 trillion.
"The reasonable market capitalization of Changxin Technology ultimately depends on the final pricing after listing, as the market will value the company based on the memory industry cycle and Changxin Technology's expected future profitability. Judging from the current offering market capitalization, there is still some upside room reserved for the secondary market, especially considering the existing valuation premium for the Sci-Tech Innovation Board," a Beijing-based private equity investment manager told *Caijing*.
The Largest IPO in the History of the Sci-Tech Innovation Board
Changxin Technology originally planned to raise ¥29.5 billion. However, due to the strong enthusiasm of market institutions during the inquiry process, the latest raised amount has expanded to ¥57.919 billion, with nearly ¥30 billion in over-raised funds, surpassing Semiconductor Manufacturing International Corporation to become the largest IPO fundraising in the history of the Sci-Tech Innovation Board.
According to the issuance announcement, Changxin Technology's offering on the Sci-Tech Innovation Board consists of 6.688 billion shares, accounting for approximately 10.00% of the total share capital after issuance. The company has granted China International Capital Corporation Limited an over-allotment option covering no more than 15.00% of the initial offered shares, corresponding to 1.003 billion shares under the over-allotment option. The pricing method determines the offering price through preliminary offline inquiry, with no cumulative bidding inquiry conducted offline afterwards, and the final offering price is confirmed at ¥8.66 per share.
If this offering is successfully completed, before the exercise of the over-allotment option, the total estimated raised capital will be ¥57.919 billion, and the net proceeds after deducting issuance expenses will be approximately ¥57.638 billion. This fundraising amount surpasses Semiconductor Manufacturing International Corporation's ¥53.23 billion, making it not only the largest IPO in the history of the A-share Sci-Tech Innovation Board but also the largest tech stock IPO in the A-share market. At the same time, this fundraising amount ranks fifth in A-share history, following Agricultural Bank of China, PetroChina, China Shenhua, and China Construction Bank, whose respective IPO fundraising amounts are ¥68.529 billion, ¥66.8 billion, ¥66.582 billion, and ¥58.05 billion.
If the over-allotment option is fully exercised, Changxin Technology's total raised capital is expected to further expand to ¥66.607 billion, with the net proceeds after deducting issuance expenses estimated at around ¥66.310 billion. This will likely allow the company to surpass China Shenhua and China Construction Bank, ranking third in the total historical A-share IPO fundraising rankings.
"The significant over-raised funds for Changxin Technology are clearly due to widespread optimism among institutions, leading to a higher offline new share pricing than previously expected," the aforementioned Beijing private equity investment manager told *Caijing*.
It is understood that the Sci-Tech Innovation Board adopts the offline institutional inquiry pricing mechanism, where institutional investors such as public funds, social security funds, insurance companies, and industrial funds independently submit quotations. As a highly anticipated IPO, Changxin Technology's offline inquiry process has seen extremely strong participation.
According to the issuance announcement, the preliminary offline inquiry for Changxin Technology's IPO has received quotation information from 11,537 placement objects managed by 333 offline investors, including Allianz Insurance, Bosera Fund, Fullgoal Fund, ICBC Credit Suisse Asset Management, and Guolian Securities Asset Management. The lowest quotation is ¥7.26 per share, the highest is ¥65.19 per share, and the total number of shares intended for subscription amounts to 1.28606 trillion shares.
After eliminating invalid quotations, the highest-priced quotations, and those below the offering price, there are finally 285 offline investors submitting valid quotations, managing 10,907 placement objects. The total number of valid shares intended for subscription reaches 1.238222 trillion shares, which is approximately 462.85 times the initial offline issuance scale before the strategic placement callback.
The announcement states that Changxin Technology and the joint lead underwriters, based on the quotation results of the offline issuance inquiry, comprehensively evaluated the company's reasonable investment value, the secondary market valuation level of comparable companies, and the secondary market valuation level of the industry. After fully considering factors such as the multiple of valid offline investor subscriptions, market conditions, fundraising needs, and underwriting risks, they jointly determined the final offering price at ¥8.66 per share.
However, according to the previously planned fundraising amount of ¥29.5 billion in the prospectus and the new share issuance volume of 6.688 billion shares, the corresponding theoretical minimum offering price should be approximately ¥4.41 per share. This means that Changxin Technology's offering price of ¥8.66 per share is nearly double the minimum offering price.
Meanwhile, Changxin Technology disclosed in the issuance announcement that the diluted price-to-earnings ratio corresponding to this offering price, based on the lower value of the 2025 net profit before and after deducting non-recurring gains and losses, is 308.92x. This is higher than the industry's average static price-to-earnings ratio of the most recent month (76.32x), as well as the average static price-to-earnings ratio of comparable companies in the same industry after deducting non-recurring gains and losses in 2025 (134.62x). In terms of price-to-book ratio, the diluted price-to-book ratio corresponding to this offering price is 5.06x, which is lower than the 2025 average static price-to-book ratio of 9.30x for comparable companies in the same industry.
Nevertheless, according to Changxin Technology's previously disclosed performance for the first half of 2026, the attributable net profit to parent company owners is expected to be between ¥50 billion and ¥57 billion, representing a year-on-year increase of 2244.03% to 2544.19%. If the full-year attributable net profit reaches ¥100 billion, the price-to-earnings ratio corresponding to this offering price will be approximately 5.8x.
Premium Strategic Investors Including Social Security Fund Participate
This issuance announcement also disclosed information about the strategic investors participating in Changxin Technology's IPO. According to the announcement, the new share offering of Changxin Technology on the Sci-Tech Innovation Board adopts a combined method of strategic placement, offline issuance, and online issuance.
The final strategic placement volume for strategic investors is 1.667 billion shares, accounting for approximately 24.93% of the initial issuance volume, with a lock-up period of 12 to 36 months. This represents a reduction of approximately 1.677 billion shares compared to the previously planned initial strategic placement volume of 3.344 billion shares, and the vast majority of this difference will be called back to the online issuance. This means that since the offering price has doubled compared to the initial minimum price, Changxin Technology's strategic placement quota has only been half utilized.
According to the list of investors participating in strategic placement disclosed in the announcement, the strategic investors include 36 portfolios from the National Social Security Fund and the Basic Pension Fund, as well as 29 other strategic investors. Among them, multiple portfolios from the National Social Security Fund, multiple portfolios from the Basic Pension Fund, the second phase of the National Structural Adjustment Fund, PICC Property and Casualty, China Life, China Post Life, Taikang Life, and other large insurance companies and national-level large investment funds with long-term investment intentions are included.
In addition, Changxin Technology's strategic investors also include multiple semiconductor industry chain enterprises with strategic cooperation relationships or long-term cooperation visions, such as Advanced Micro-Fabrication Equipment, Piotech, Montage Technology, Shanghai Simgui Technology, Anji Technology, Yitang Semiconductor, and JCET Group. Downstream terminal industrial capital is also included, most of which are Changxin Technology's customers, such as internet companies like Alibaba Cloud Feitian and Meituan; consumer electronics companies like Xiaomi, TCL Technology, Transsion Holdings, and Huaqin Technology; and automotive enterprises like NIO Power and Chery Automobile. Each of the aforementioned semiconductor industry chain enterprises and downstream terminal industrial customers has the same allocated share volume and amount, which is 18.24 million shares and ¥158 million respectively, accounting for 0.27% of the initial issuance volume.
For retail investors, what kind of returns can they obtain if they win one lot of Changxin Technology's new shares?
Wind data shows that as of the first half of the year, among the 11 new stocks listed on the Sci-Tech Innovation Board this year, the offering price range is between ¥6.41 per share and ¥92.18 per share. Changxin Technology's offering price ranks 10th, lower than new stocks such as Hengyunchang (688785.SH), Lianxu Instruments (688808.SH), Changjin Photonics (688635.SH), and Zhenbao Technology (688797.SH), all of which have offering prices above ¥40 per share. Changxin Technology's offering price is only higher than the ¥6.41 per share of Yanfu New Materials (688811.SH), a Sci-Tech Innovation Board stock listed on April 10.
Calculated based on 500 shares per lot for Sci-Tech Innovation Board new shares, investors need to pay approximately ¥4,330 for one lot of Changxin Technology's new shares. If calculated based on the median first-day increase of 289.48% for Sci-Tech Innovation Board new stocks this year, the new share subscription return will be around ¥12,500; based on the average first-day increase of 489.83% for Sci-Tech Innovation Board new stocks this year, the new share subscription return will be approximately ¥21,200.
Judging from the profit effect of A-share new share subscriptions this year, the "high-yield lot" new stocks on the Sci-Tech Innovation Board such as Lianxu Instruments, Changjin Photonics, Zhenbao Technology, and Hengyunchang have all achieved first-day new share subscription returns of over ¥100,000. Among them, Lianxu Instruments has a new share subscription return as high as ¥358,600, making it the new stock with the highest new share subscription return this year. Up to now, the new share subscription returns on the Sci-Tech Innovation Board have significantly exceeded those of other sectors, with the average first-day new share subscription return of the 11 Sci-Tech Innovation Board new stocks reaching ¥108,700.
For individual retail investors, if they participate in Changxin Technology's Sci-Tech Innovation Board new share subscription, the account opening threshold is higher than that of other sectors. They need to meet the following conditions: the average daily securities assets in the 20 trading days before account opening are ≥ ¥500,000 (excluding margin trading liabilities); they have at least 24 months of securities trading experience; and their risk assessment result reaches C4 or above.
Part of the strategic placement list is as follows:
Data source: Changxin Technology Announcement
This article is from the WeChat public account "DuShuYiZhi" (ID: dushuyizhi007), written by Kang Guoliang, and published by 36Kr with authorization.