Over 6,000 employees receive shares, CXMT's IPO set to create wealth on a massive scale

According to data disclosed in the prospectus, ChangXin Memory Technologies (CXMT) has implemented two phases of employee stock ownership plans before going public, granting shares to a cumulative total of 6,760 person-times. These plans cover management talents, key business personnel, core technical staff, and employees in critical frontline production positions, making it one of the largest pre-IPO equity incentive schemes in the semiconductor industry.

CXMT's employee stock ownership plan was rolled out in two phases over four years. The first phase, launched in September 2021, granted shares to 3,596 employees at a price of 1.05 yuan per registered capital, covering key personnel involved in early stage production line construction and technology R&D. The second phase, initiated in June 2023, coincided with a low point for the company, which was suffering massive losses due to large-scale expansion and severely eroded net assets; the cost per share was compressed to 0.108 yuan. As of the IPO, the two phases have covered a total of 6,760 person-times, accounting for 35% of the company's total workforce of 19,298 employees. Among them, R&D personnel represent over 30%, and those with a master's degree or higher account for nearly 40%. According to the prospectus, the shares held by employees must be distributed gradually over ten years, starting 36 months after the listing. The distribution can be in the form of shares or cash proceeds, with the final return depending on the company's long-term value.

CXMT officially disclosed its prospectus for listing on the STAR Market (科创板) on July 9th. The company's securities code is 688825, and the online subscription code is 787825. This IPO plans to publicly issue 6.688 billion new shares, accounting for approximately 10% of the total share capital after issuance. It intends to raise 29.5 billion yuan, setting a record for the largest A-share market IPO since 2026.