MetaX Integrated Circuits Shanghai Co. made a spectacular debut on the Shanghai Stock Exchange on Wednesday, with its shares skyrocketing as much as 755% intraday. This marks one of the strongest first-day performances for a Chinese IPO raising between $500 million and $1 billion in the past decade. The company raised approximately $585.8 million, pricing its shares at 104.66 yuan before they surged to over 835 yuan during trading.
The offering witnessed exceptionally strong demand, with the retail tranche oversubscribed by a staggering 2,986 times. This even surpassed the recent blockbuster debut of rival Moore Threads Technology Co., which was oversubscribed by 2,750 times earlier in December. The intense rally is expected to attract investors who missed out on allocations through China's competitive IPO lottery system.
The debut propelled MetaX's market capitalization to over 300 billion yuan, nearing Moore Threads' valuation of about 337 billion yuan. Analysts note MetaX's price-to-sales ratio stands at 56.4, which is below the peer average of 127.4 for companies like Cambricon Technologies Corp. and Advanced Micro Devices Inc. Fund manager Xu Dawei of Jintong Private Fund Management suggested that, using peers as a benchmark, MetaX might have a 10-12 times upside potential and could spearhead a broader tech stock rally.
The surge is fueled by investor enthusiasm for domestic AI chipmakers, driven by Beijing's push for semiconductor self-sufficiency and U.S. export restrictions that limit China's access to Nvidia's most advanced AI chips. MetaX designs GPUs for AI workloads, gaming, and advanced visualization. Its AI-focused Xiyun C500 series accounted for nearly 98% of its 2024 revenue, with the company claiming performance comparable to Nvidia's A100. Its newer C588 generation has reportedly narrowed the gap with Nvidia's H100. MetaX estimates it captured about 1% of China's AI chip market last year.
The listing capped a busy day for Asian IPOs, which also included the debut of Hong Kong-based cryptocurrency exchange HashKey Holdings Ltd. Among the day's new listings, only HashKey traded below its IPO price. MetaX's success has added momentum to a rally in Chinese chip stocks, following Beijing Onmicro Electronics Co.'s debut where shares more than doubled earlier in the week. Large semiconductor firms like ChangXin Memory Technologies Inc. and Yangtze Memory Technologies Co. are widely expected to pursue listings with potential valuations up to 300 billion yuan.
MetaX's roots trace back to AMD, with key founders including Chairman and CEO Chen Weiliang having previously worked at the U.S. chipmaker. Analysts view the debut as reflecting strong growth expectations and confidence in China's push for a more self-sufficient semiconductor ecosystem amid persistent geopolitical tensions.
