ChangXin Memory Technologies Inc made a stunning market debut today on the Shanghai Stock Exchange's STAR Market, shattering records with its initial public offering.

The company, China's leading DRAM chip manufacturer and the world's fourth-largest, was priced at 8.66 yuan per share for its IPO. However, it opened at 49.50 yuan per share, representing a staggering 471.59% surge. This opening price pushed its market capitalization to over 3.31 trillion yuan, surpassing Industrial and Commercial Bank of China to become the most valuable stock on the A-share market.

By midday trading, the total market value of ChangXin Memory had climbed to 3.65 trillion yuan, overtaking the Hong Kong-listed tech giant Tencent.

Behind this massive valuation surge lies a spectacular wealth creation event for the entire workforce. According to publicly disclosed data, Chairman Zhu Yiming indirectly holds approximately 1.59 billion shares in the company. Based on the opening price of 49.5 yuan per share, the market value of his holdings is estimated at around 787 billion yuan. This is a static calculation based on the first-day opening price and does not represent the actual cashable amount.

Employee wealth creation primarily stems from strategic placement asset management plans and employee stock ownership plans. Publicly disclosed incentive plans reveal that Zhu Yiming had previously launched a significant profit-sharing initiative, pledging to distribute 50% of his personal holdings, totaling 768 million shares, to all current employees over the ten years following the listing. Excluding his personal holdings, this equity incentive package is valued at over 200 billion yuan, making it the largest individual equity incentive plan in A-share history.

Leveraging this mechanism and the windfall from the soaring market capitalization, the company has generated a vast number of employees with net worths exceeding 10 million yuan. The strategic placement asset management plan, covering 377 senior management and core employees, received a total allocation of approximately 1.593 billion yuan. Based on the opening price, employees with an allocation of 200 million yuan or more now have a stock market value exceeding 10 million yuan, creating at least 237 new millionaires.

Regarding the employee stock ownership plan, the company has implemented two phases. The first phase, launched in July 2020, had a grant price of 1.05 yuan per share, covering 3,596 participants. The second phase, launched in June 2023, had a grant price of only 0.108 yuan per share, covering 3,164 participants. Based on the opening price of 49.5 yuan per share, the paper return for employees in the second phase is over 400 times their investment.

ChangXin Memory is the sole domestic and the world's fourth-largest integrated DRAM research, development, and manufacturing company. It operates three 12-inch wafer fabrication bases in Hefei and Beijing, steadily narrowing the technology and capacity gap with industry leaders Samsung, Micron, and SK Hynix.

Driven by the cyclical upturn in the memory chip market, the company's performance has achieved a fundamental turnaround. Its net profit for the first half of the year is projected to be between 50 billion and 57 billion yuan, completely breaking free from its previous years of sustained losses. Its products are now supplied in bulk to servers and consumer electronics, deeply integrated into the supply chains of major domestic internet companies, and have established a complete, self-controlled memory industry chain support system.

Hardcore physical technology and the self-controlled, high-end manufacturing sector are becoming the core windfall for the capital market, also serving as the primary arena for industrial talent to achieve significant value growth.

* This report is compiled based on public information and does not constitute any investment advice.