Traders on Hyperliquid are valuing CXMT shares at an astonishing 575% above the IPO price prior to the company’s debut on the Shanghai stock exchange. The perpetual futures launched by Trade.xyz reached a peak of $8.64, significantly above the company’s offering price of 8.66 yuan (approximately $1.28).
This surge suggests a market valuation nearing $500 billion for CXMT. Expectations are high that the company will see immense growth once its stocks begin trading, projecting a potential rise of about 330% from its offering price. If achieved, this would position CXMT as the largest publicly traded entity in mainland China, overtaking Industrial and Commercial Bank of China, valued around 2.5 trillion yuan.
Anticipated Major Listing
The Hyperliquid contract enables traders to speculate on the share price of CXMT before it officially starts trading, fueling a global market buzz around one of China's most highly anticipated technology listings.
CXMT aims to raise up to $9.8 billion during its IPO, which would be the second largest in mainland history. The company sold 7.69 billion shares at 8.66 yuan each, resulting in an initial market cap of roughly 580 billion yuan.
Retail interest has been overwhelming, with the offering oversubscribed 212 times after implementing a clawback mechanism, resulting in 9.4 million orders from individual investors. With a projected net income of around 100 billion yuan this year, CXMT’s IPO valuation is set at about 5.9 times estimated earnings for 2026, a stark contrast to the typical 20 times multiple.
Recent IPOs in mainland China have boasted remarkable early returns; for instance, those raising over $100 million within the last two years have averaged gains of 248% on their first day of trading. CXMT, as the fourth largest producer globally of dynamic random access memory chips, plays a significant role in China's strategy to diminish dependence on foreign semiconductor suppliers, particularly in high bandwidth memory critical for AI infrastructure.
A successful IPO could pave the way for other prominent Chinese tech firms considering public offerings, including rival Yangtze Memory Technologies and AI developer DeepSeek.
This material is informational and should not be considered financial advice.
