China’s YMTC Seeks $4.6 Billion in IPO as It Closes In on Samsung, SK Hynix

Plans to raise 33 billion yuan for production and R&D

Second-quarter NAND market share reaches 14%, ranking third globally

Post-listing valuation could reach as much as 330 billion yuan

Yangtze Memory Technologies Co., or YMTC, is stepping up its initial public offering plans. After DRAM maker ChangXin Memory Technologies, or CXMT, moved to raise large sums in the capital markets, YMTC’s fundraising drive could accelerate the advance of Chinese memory-chip makers.

The Shanghai Stock Exchange said on Aug. 22 that it had accepted, a day earlier, an IPO application from CCSH Corp., YMTC’s parent company, for a listing on the STAR Market. The STAR Market is China’s Nasdaq-style board for science and technology companies.

YMTC plans to raise 33 billion yuan, or about $4.6 billion, from the listing. It will use the proceeds to upgrade production lines and fund research and development.

Reuters reported that the planned new share sale totals 1.98 billion to 2.43 billion shares. The company’s post-listing valuation could range from 275 billion yuan to 330 billion yuan, or about $38.3 billion to $46 billion.

By fundraising size, the deal would rank as the third-largest ever on the STAR Market. Reuters said only CXMT and Semiconductor Manufacturing International Corp., China’s largest foundry, have sought bigger listings.

YMTC’s growth has also been rapid. Its prospectus showed first-quarter revenue of 47 billion yuan, or about $6.6 billion, already above full-year 2024 revenue of 45.2 billion yuan. Higher memory demand driven by the spread of artificial intelligence helped lift results.

The company is also gaining market share. Counterpoint Research said YMTC captured 14% of the global NAND flash market by shipments in the second quarter, overtaking Kioxia to rank third for the first time.

Samsung Electronics retained the top spot with 25%, while SK Hynix was second with 22%, including Solidigm. Kioxia ranked fourth with 14%, and Micron Technology placed fifth with 13%.

Chinese semiconductor and advanced-technology companies have also been pressing ahead with stock market listings. CXMT raised as much as 66.61 billion yuan, or about $9.3 billion, in its IPO last month.

CXMT shares jumped 465.82% on their trading debut, climbing from the offer price of 8.66 yuan to 49 yuan. The company became the largest stock by market capitalization on mainland Chinese exchanges and closed at 58 yuan on Aug. 21.

Hong Min-seong, Hankyung.com reporter mshong@hankyung.com