GIGADEVICE (03986.HK) experienced a sharp intraday decline of 9.67% on Thursday, significantly underperforming the broader market.

The plunge is primarily attributed to the official IPO subscription day for CXMT (ChangXin Memory Technologies), China's largest DRAM manufacturer. CXMT's IPO was priced at a valuation of approximately RMB 580 billion, which is substantially lower than the market's prior expectation of over RMB 1 trillion. This massive IPO, targeting around RMB 579 billion in proceeds, is creating a significant liquidity siphoning effect across the semiconductor sector.

GIGADEVICE is directly exposed to this development, holding a 1.8% pre-IPO stake in CXMT and serving as its exclusive DRAM product distribution partner. The lower-than-expected valuation negatively impacts the investment gain expectations for GIGADEVICE, contributing to the heavy selling pressure.