Key facts
- YMTC's parent CCSH Corporation filed in August to raise 33 billion yuan ($4.9 billion) on Shanghai's STAR market.
- An internal YMTC note said the strategic share placement was put on hold due to "various factors" without elaborating.
- Two people with knowledge of the matter said the delay could last several months and a listing may come in the first half of 2027.
- The CSI300 Index fell 8.5% in October, its worst monthly performance in more than a decade, Reuters reported.
- The STAR50 index of Shanghai-listed chip and AI firms fell 40% from its July peak through the end of October.
- Four people said the CSRC gave informal guidance to investment banks to slow IPOs by AI and chip companies.
Chinese flash-memory chipmaker Yangtze Memory Technologies Co has put its Shanghai initial public offering on hold, according to an internal note the company sent to staff and seen by Reuters, and to people with knowledge of the matter. The note said the process was paused due to "various factors" and did not elaborate.
CCSH Corporation, YMTC's parent, filed in August for a listing on Shanghai's Nasdaq-style STAR market, aiming to raise 33 billion yuan ($4.9 billion). YMTC had planned to kick off strategic share placement for the IPO in late October and early November. Two of the people said the delay could last several months and that YMTC will likely go public in the first half of 2027, subject to market conditions. The delay has not been reported previously.
YMTC is China's largest maker of NAND chips, used to store data in phones, computers and data centers. The delay could throw a wrench in its capacity expansion plans. Its growth during a global memory chip shortage last year has allowed it to take Chinese market share from established NAND suppliers including South Korea's Samsung and SK Hynix.
The Shanghai Stock Exchange website lists the IPO application in the "inquiry stage". YMTC did not respond to a Reuters request for comment. The people declined to be named because the plan to delay the offering was confidential.
Tech stocks have been the main target of selloffs over the past few months. The blue-chip CSI300 Index slumped 8.5% in October, its worst monthly performance in more than a decade, and the STAR50 index of Shanghai-listed chip and AI firms tumbled 40% from its July peak through the end of last month.
Regulatory scrutiny of new listings has tightened over the past few weeks as market conditions weakened, according to three separate people with knowledge of the matter. The China Securities Regulatory Commission has given informal guidance to investment banks to slow IPOs by AI and chip companies, another four people with knowledge of the matter said. The CSRC did not respond to a Reuters request for comment.
The Financial Times reported on Tuesday, citing people with knowledge of the discussions, that China's securities regulator has told investment banks to pause IPOs and has suspended large share sales by existing shareholders until markets recover.