CX Technology Finalizes STAR Market IPO with Full Greenshoe Exercise
ChangXin Memory Technologies Inc. (Stock Code: 688825.SH, referred to as "CX Tech") has completed all procedures related to its initial public offering on the STAR Market. The company announced that the over-allotment option, commonly known as the "greenshoe" option, has been exercised in full by the joint lead underwriters.
Changes in Issue Size and Share Capital
The full exercise of the greenshoe option resulted in the issuance of approximately 1.003 billion additional shares. Consequently, CX Tech's total share capital increased from about 66.881 billion shares to approximately 67.884 billion shares. This finalizes the total offering size of the company's STAR Market debut.
Market Performance and Underwriter Actions
A key point highlighted in the announcement is that during the greenshoe option exercise period, the company's stock consistently traded above its IPO price of 8.66 RMB per share on the secondary market. As a result, China International Capital Corporation Limited (CICC), one of the authorized lead underwriters for the offering, did not utilize the funds obtained from the over-allotment to purchase shares in the secondary market through competitive bidding to stabilize the price.
This typically indicates strong market demand and stable post-IPO performance for CX Tech's shares, eliminating the need for the underwriters to initiate the price-stabilizing purchase mechanism part of the greenshoe arrangement.
Milestone for the IPO
The full exercise of the over-allotment option marks the conclusion of CX Tech's listing process on the STAR Market. It not only provides the company with additional raised capital but also sends a positive signal to the market regarding the offering's full subscription and stable aftermarket performance. For investors, the clarification of the final total share capital provides an accurate basis for future equity analysis and valuation.
With this step completed, CX Tech, a significant player in the semiconductor memory sector, has successfully concluded its capital market debut and now enters a new phase as a publicly listed company.