Chinese chip giant CXMT’s $12.7 billion IPO is a flop
The US-China AI arms race has moved on to financing.
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CXMT did not have a powerful backer to work out a good selling price.
PHOTO: REUTERS
Shuli Ren
What makes an initial public offering (IPO) great?
One might say SpaceX’s recent IPO was a success. Global investors were fervently chasing its shares during book-building, but the actual debut was orderly. Trading was smooth and the stock finished 20 per cent higher on the first day, giving speculators a nice little bonus to go home with. Elon Musk, meanwhile, was handed US$86 billion (S$111.2 billion) to fund his grand ambitions, which range from Mars exploration to orbiting AI data centres in space.
