Shares of Moore Threads, the Beijing-based graphics processing unit (GPU) manufacturer often referred to as China's Nvidia, surged by a record 400% on its first day of trading on the Shanghai Stock Exchange, following its $1.1 billion listing.
The stock closed at 600.500 yuan, more than five times its initial offering price of 114.28 yuan, according to CNBC.
The offering was led by CITIC Securities as the lead underwriter, while BOC International Securities, China Merchant Securities, and GF Securities participated as joint bookrunners.
The company, which has yet to turn a profit, explained in its prospectus that the proceeds from the offering will be used to accelerate several key research and development initiatives, including the development of a new generation of AI chips for training and reasoning. A portion of the funds will also be allocated to bolstering working capital.
The IPO's success comes despite the company being placed on the US sanctions list in 2023, which limited its access to advanced chip manufacturing technologies and global factories.
