Chinese company MetaX Integrated Circuits Shanghai Co’s shares surged 693% on the first day of trading on Wednesday, following its blockbuster initial public offering (IPO).
This jump in MetaX Integrated marked the best performance by a Chinese IPO in the $500 million–$1 billion range over the past decade, according to Bloomberg data.
Priced at 104.66 yuan per share, the rally took MetaX’s market capitalisation to over 332 billion yuan. The strong debut also lifted broader markets, with the chip-heavy STAR 50 Index rising 2.5% and the ChiNext Index gaining 3.4%.
MetaX’s IPO listing similar to Moore Threads
MetaX’s massive listing gains follow a similar trend as seen in the case of Moore Threads Technology C, whose shares jumped more than sixfold over eight sessions since its debut, with the stock quintupling on the first trading day alone, as per Bloomberg report.
Moore Threads currently has a market value of 336 billion yuan, comparable to MetaX’s post-listing valuation.
MetaX trades at a price-to-sales ratio of 56.4, significantly lower than the peer average of 127.4, which includes companies such as Cambricon Technologies Corp. and Advanced Micro Devices Inc.
Both Moore Threads and MetaX make graphics processing units for artificial intelligence (AI) developers — an industry that’s growing at a rapid pace as consumers and businesses adopt AI services.
Chinese investors are betting on companies like MetaX that could emerge as competitors to global leader Nvidia, whose most advanced chips have been restricted from being sold by the US to China amid export controls.
MetaX IPO witnesses bumper demand
The report also stated that MetaX’s IPO was 2,986 times oversubscribed in the retail segment, beating Moore Threads’ oversubscription of 2,750 times.
Such demand reflects China’s cautious regulatory stance on IPO pricing, where authorities often limit valuations to protect retail investors. According to the Bloomberg report, a major reason behind the oversubscription is China’s cautious regulatory stance on IPO pricing, where authorities often limit valuations to protect retail investors.
Chinese IPOs have been strong this year, averaging a 250% pop on the first trading day, according to data compiled by Bloomberg.
MetaX can trace roots to AMD
MetaX designs and sells graphics processing units (GPUs) used in artificial intelligence workloads. The company traces its roots to Advanced Micro Devices (AMD), with three key founders — including Chairman and CEO Chen Weiliang — having previously worked at the US chipmaker.
In 2024, MetaX’s AI-focused Xiyun C500 series accounted for nearly 98% of total revenue. The company claims the chips are comparable to Nvidia’s A100.
MetaX captured about 1% of China’s AI chip market last year, according to its prospectus, and operates in a rapidly growing sector driven by domestic substitution and rising AI adoption across industries.
(With inputs from agencies)
