Over 6,000 employees receive shares, CXMT's IPO poised to create a wave of wealth

Odaily News According to data disclosed in the prospectus, ChangXin Memory Technologies (CXMT) implemented two employee stock ownership plans before its listing, cumulatively granting shares to 6,760 participants, covering the company's management talent, key business personnel, core technical staff, and employees in critical frontline production positions. This represents one of the largest pre-IPO equity incentive plans in the semiconductor industry.

CXMT's employee stock ownership plan was implemented in two phases over four years. The first phase was launched in September 2021, granting shares at a price of 1.05 RMB per unit of registered capital to 3,596 employees, covering key personnel involved in early production line construction and technology R&D. The second phase was initiated in June 2023, coinciding with a low point when the company was facing substantial losses due to massive capacity expansion and severely eroded net assets, with the cost per share compressed to 0.108 RMB. As of the IPO, the two phases had cumulatively covered 6,760 participants, accounting for 35% of the company's total workforce of 19,298 employees. Among them, R&D personnel accounted for over 30%, and nearly 40% held a master's degree or higher. According to the prospectus, employee-held shares must be distributed over ten years, starting 36 months after the listing, and the distribution can be in the form of shares or cash benefits, with the final returns depending on the company's long-term value.

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