IPO Proceeds For Massive R&D
Moore Threads’ shares debuted at 650 yuan ($91.92) on the STAR Market, a 468% surge from their IPO price of 114.28 yuan ($16.16), even as the broader market, the CSI300 Index, was trending lower.
The stock touched 688 yuan during the session. The massive debut followed a robust response to the IPO, which was oversubscribed by more than 4,000 times.
Moore secured 8 billion yuan ($1.13 billion) in what stands as the mainland's second-largest IPO of the year, following Huadian New Energy Group Co.'s $2.7 billion IPO in July.
Despite not yet being profitable, the company’s revenue in 2024 grew over threefold, as per its prospectus. It plans to use its IPO proceeds to fast-track core R&D, particularly next-generation, self-developed AI training and inference GPUs. Part of the funding will also go toward strengthening its working capital.
This IPO underscores the rise of Chinese firms building their own AI processors, aligning with Beijing's push to cut dependence on U.S. chip designer Nvidia. The field now includes major players like Huawei and niche developers such as Cambricon, whose Shanghai-listed shares have jumped over 112% so far this year.
Fast CSRC Nod And Strong Backing
Moore Threads fast-tracked its way to market, receiving China Securities Regulatory Commission (CSRC) approval in just 88 days, far quicker than the STAR Market's roughly 470-day average. Its IPO was also bolstered by major backing, including a 7 million-yuan ($0.98 million) pre-IPO investment from DeepSeek and HighFlyer founder Liang Wenfeng, the company's largest institutional investor.
Founded in 2020 by a former Nvidia executive, Zhang Jianzhong, the company was subjected to U.S. sanctions in 2023, which limited its access to advanced chip manufacturing processes and foundries. Zhang served as Nvidia’s Global Vice President and General Manager for China.
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The surge in Moore Threads’ shares comes at ...
