Shares of wafer producer Xi’an ESWIN Material Technology Co. Ltd. surged as much as 361% in their trading debut Tuesday, before closing up 198.7%, marking a blockbuster entry for the first unprofitable company to list on Shanghai’s STAR Market under newly implemented reforms.
ESWIN ended the day at 25.75 yuan per share, giving it a market capitalization of 104 billion yuan ($14.6 billion). The company raised 4.6 billion yuan in its initial public offering, the largest IPO on the STAR Market this year, and the second-largest among all listings across China’s A-share markets.
The strong debut reflects investor confidence in China’s effort to promote “hard tech” firms — companies in strategic, innovation-heavy sectors like semiconductors — even before they turn a profit. It also marks a significant test for the eight-point reform plan introduced in June 2024 aimed at deepening the STAR Market’s appeal as a financing platform for emerging industries.
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