On July 16th, Changxin Components issued shares at 8.66 yuan, triggering subscriptions. This corresponds to a post-IPO market capitalization of approximately 579.2 billion yuan, making it the largest IPO in the A-share market this year and the second largest in the history of the STAR Market. However, the pricing of less than 600 billion yuan was significantly lower than the market's previous expectations of a "trillion-yuan memory giant," indicating that valuation is shifting from conceptual narratives to public market pricing.
GigaDevice, holding 1.8% of Changxin Components' shares (before the IPO), is an industry synergy partner. Both companies were founded by Zhu Yiming and are highly intertwined in the DRAM business. GigaDevice has long been regarded by the market as the strongest "shadow stock" and liquidity voucher for trading Changxin's listing expectations.
In the past few months, a large amount of active capital has been buying GigaDevice shares to lock in positions in advance and hedge against the valuation premium of Changxin's listing. When Changxin Technology officially launched its IPO on the 16th, the certainty of the expectation reached 100%. For arbitrageurs, the "shadow premium" of continuing to hold GigaDevice began to diminish. Profit-taking surged during the sensitive window period, triggering a stampede of bullish selling, and A-shares suffered two consecutive days of limit-down.
