(Yicai) July 16 -- At least eight executives at Chengxin Memory Technologies are set to pocket paper gains of more than CNY100 million (USD14.8 million) each after the Chinese memory chip giant completes what is expected to be the Star Market’s second-biggest initial public offering on record.

CXMT’s directors, senior managers, key technicians, and their close family members indirectly hold 2.03 billion shares of the Hefei-based company, according to the listing prospectus. Based on the offering price of CNY8.66 (USD1.27) per share announced two days ago, their combined stake is worth CNY17.6 billion (USD2.6 billion).

In addition to founder and Chairman Zhu Yiming and President Cao Kanyu, who own CNY13.8 billion and CNY1.8 billion (USD266 million) of stock, respectively, six more have between CNY107 million and CNY462 million. Six other executives, technicians, and their families own shares worth CNY19.4 million to CNY85.7 million (USD2.9 million to USD12.7 million).

After CXMT goes public, it will have a market capitalization of about CNY579.2 billion (USD85.6 billion). Some analysts estimate that its strong investor appeal could push that to CNY2 trillion (USD295.5 billion) or even CNY3 trillion once trading begins. This suggests that more executives will cross the CNY100 million wealth line after the listing.

Zhu will honor his commitment to donate half of his 1.53 billion personally granted shares into an employee incentive program to help drive staff enthusiasm for technological innovation and entrepreneurship, CXMT’s Vice President and Board Secretary Yuan Yuan said yesterday on an online investor exchange session. That implies that his actual net worth will be lower once all relevant share arrangements are finalized.

Planning to raise CNY29.5 billion, CXMT kicked off the process for listing on Shanghai’s Nasdaq-style science and technology board on July 9. The proceeds will primarily be used for three projects: upgrading memory-wafer production lines, advancing dynamic random-access memory technology, and conducting forward-looking DRAM research and development.

The IPO is poised to become the second-largest in the Star Market’s seven-year history. Offline and online subscriptions for new shares open today, with trading scheduled to start on July 27.

Editors: Tang Shihua, Futura Costaglione