China memory chipmaker CXMT set for Shanghai debut after Asia's biggest IPO

CXMT makes DRAM chips, a type of memory chip used in phones, computers and servers. It is the world's fourth-largest DRAM maker after Samsung Electronics 005930.KS, SK Hynix 000660.KS and Micron Technology MU.O.

The company's IPO is the biggest mainland Chinese semiconductor offering on record, surpassing SMIC's 0981.HK $7.5 billion Shanghai share sale in 2020.

Morningstar analyst Jing Jie Yu wrote in a report on Friday that CXMT was well-placed to benefit from rising domestic AI demand, but its technology gap with global leaders could limit its share of the market for memory chips used in AI systems.

Its debut comes after Shanghai's tech-focused STAR 50 Index .STAR50 edged down 0.1% on Friday, while the broader Chinese and Hong Kong markets fell as higher oil prices amid renewed Iran war concerns hurt risk appetite.

CXMT said in its prospectus that AI demand helped drive the latest DRAM upswing, but said the market could weaken if AI investment slowed or rivals added too much supply.