STOCKS | ChangXin Technology Details Pre-IPO Employee Share Plans Ahead of STAR Market Listing

ChangXin Technology said in its prospectus that it implemented two pre-IPO employee shareholding plans, granting equity a total of 6,760 times and covering management, key business staff, core technical personnel, and frontline employees in critical roles.

According to Odaily, the two plans were carried out over four years. The first phase began in September 2021, granting shares to 3,596 employees at a price of CNY 1.05 per unit of registered capital, covering staff involved early in production line construction and technology R&D. The second phase began in June 2023, when the company was experiencing heavy losses and a significant erosion of net assets due to large-scale capacity expansion, with the per-share cost reduced to CNY 0.108.

Before the IPO, the two plans covered 6,760 participations, representing 35% of the company’s 19,298 employees. R&D personnel accounted for more than 30% of participants, and nearly 40% held a master’s degree or higher. The prospectus said employee-held shares can be distributed after 36 months from listing, gradually over 10 years, either as shares or cash proceeds, with final returns tied to the company’s long-term value.

ChangXin Technology formally disclosed its STAR Market IPO prospectus on July 9. The company’s stock code is 688825 and its online subscription code is 787825. The IPO plans to publicly issue 6.688 billion shares, about 10% of total share capital after issuance, and aims to raise CNY 29.5 billion, which the prospectus described as the largest A-share IPO since 2026.