Shares of CXMT Corp surged nearly 470 percent on their Shanghai debut on Monday in Asia's biggest IPO this year, catapulting the chipmaker to the top of China's stock market by valuation despite a recent selloff in global tech stocks.

In Hong Kong, the benchmark Hang Seng Index gained 30.54 points, or 0.12 percent, to open at 24,993 before gaining ground to be 178 points, or 0.72 percent, higher at 25,142 in early trade.

On the mainland, the Shanghai Composite Index opened down five points, or 0.14 percent, at 3,808.

The Shenzhen Component Index was six points, or 0.04 percent, lower at 13,768 while the ChiNext Index was up by one point at 3,482.

In Tokyo, the Nikkei opened up 553 points, or 0.86 percent, at almost 65,164 before plunging at one points before lunch to be just under eight points up at 64,618.

In Seoul, the Kospi opened up 115 points, or 1.73 percent, at 6,806 before plunging to be almost 77 points, or 1.15 percent, lower at 6,613 at one point before midday.

CXMT began trading at 49.50 yuan compared to the sale price of 8.66 yuan. The rally in the first few ⁠minutes lifted CXMT's market capitalisation to 3.3 trillion yuan, sharply up from US$85.5 billion ⁠during the IPO process.

The explosive debut makes CXMT the nation's most valuable listed company, overtaking Industrial and Commercial Bank ⁠of China, the market's previous heavyweight.

The ‌debut will give investors a gauge of how much they are willing to pay for a marquee ‌Chinese chip firm, as local markets navigate volatility following an AI-led selloff, and money rotates ⁠between high-growth technology names and safer sectors.

CXMT, formally ChangXin Memory Technologies, raised 57.92 billion yuan and the proceeds could rise to 66.61 billion yuan if an over-allotment option is ‌fully used.

At the IPO price, CXMT was valued at about 579 billion yuan before the possible exercise of the over-allotment option, making it one of China's largest listed semiconductor companies.

Only 6.73 percent of CXMT's enlarged ⁠share capital ‌will be freely tradable at listing, as most shares ‌are locked up. The small initial float could magnify price swings and attract strong turnover.

HSBC Qianhai Securities said ‌in a note last week that the offering could drain liquidity from the wider Chinese market before and on its debut, though past technology listings suggested a rebound could ⁠follow the next trading day. (Reuters & Xinhua)



Edited by Wendy Wong