Changxin Memory Technologies' STAR Market IPO: Estimated Valuation Reaches $295 billion, with a First-day Lock-up Period of 78%

According to Smart Vision Beating monitoring, chip giant Longxin Technology has been approved by the China Securities Regulatory Commission to register and officially initiate the issuance process. This offering plans to raise $29.5 billion, making it the largest semiconductor IPO in recent years. Based on the fundraising amount and issuance volume, the estimated IPO price is approximately $4.41 per share, and the post-issue total market capitalization (estimated market capitalization at IPO) will be close to $295 billion. In the first half of this year, the company is expected to achieve revenue of $110 billion to $120 billion and a net profit of $66 billion to $75 billion, turning its performance around strongly from a loss.

According to the initial issuance arrangement, the proportion of new shares available for trading on the first day of listing is relatively low. The strategic placement in this issuance accounts for a maximum of 50.00%. The offline allocation follows a "3+7" rule, with 70% of the offline allocated shares subject to a 6-month lock-up period. Calculations show that approximately 78.00% of the total new shares issued will be in a locked-up state on the first day, with only 22.00% of new shares available for trading, corresponding to an estimated market capitalization of $6.5 billion.

Investors participating in the subscription need to pay attention to eligibility and market value thresholds. Retail investors applying online (code 787825) need to have activated trading permissions for the Sci-Tech Innovation Board and hold a daily average market value of over $10,000 in the Shanghai market by July 14. Institutions participating in offline inquiries have stringent requirements, needing not only a market value of $60 million in Shanghai but also a daily average Sci-Tech Innovation Board position of over $600,000. In terms of lock-up, some pre-IPO shareholders with more than a 51% stake have pledged to lock up their shares for 36 months. The largest pre-IPO shareholder, Qinghui Electric, has also committed to automatically extend the lock-up by 12 months if the non-recurring net profit attributable to the parent company drops by more than 50% from the year before the IPO. The lead underwriter, CICC, holds a 15% over-allotment option and, if the stock price falls below the issue price within 30 calendar days after listing, has the right to buy shares in the secondary market to stabilize the price.