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More than eight top executives at Chengxin Memory Technologies are projected to see their personal wealth exceed $14.8 million following the company’s upcoming initial public offering, which is expected to be the second-largest ever on the Shanghai Star Market.
According to the listing prospectus, the directors, senior managers, key technical staff, and their close family members collectively hold approximately 2.03 billion shares of the company. At the IPO price of ¥8.66 (about $1.27) per share, the combined market value of their holdings surpasses ¥17.6 billion (roughly $2.6 billion).
In addition to Chairman and founder Zhu Yiming and President Cao Kanyu, who own shares valued at ¥13.8 billion and ¥1.8 billion (around $266 million), respectively, six other executives and core technical personnel hold shares ranging from ¥107 million to ¥462 million. Another six key staff members and their families have shareholdings valued between ¥19.4 million and ¥85.7 million (approximately $2.9 million to $12.7 million).
Based on the IPO price, the company’s market valuation approaches ¥579.2 billion (about $85.6 billion). Industry analysts estimate that investor enthusiasm could potentially push its market capitalization to ¥2 trillion (roughly $295.5 billion) or even ¥3 trillion after trading begins. This indicates that additional executives could also see their net worth exceed $14.8 million once the stock is publicly traded.
Yuan Yuan, Vice President and Board Secretary, mentioned during an online investor session yesterday that Zhu Yiming plans to donate half of his 1.53 billion shares granted by the board—initially designated as founder contributions—to an employee incentive program. The move is intended to motivate staff and foster innovation. As a result, Zhu’s net worth increase may be somewhat lower once all share arrangements are finalized.
The company launched its IPO process on July 9, aiming to raise ¥29.5 billion. The funds will primarily be used to upgrade mass production of memory wafers, develop advanced DRAM technology, and support future research and development efforts in dynamic random-access memory.
This IPO is poised to be the second-largest in the history of the Shanghai Star Market, the tech-focused segment of the Shanghai Stock Exchange. Subscriptions for new shares are open today, with trading expected to commence on July 27.
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