Chinese artificial intelligence company Zhipu AI launched a share sale on Tuesday to raise HK$4.35 billion (US$560 million), moving closer to becoming the first major language model (LLM) developer to list in Hong Kong amid a flurry of technology initial public offerings (IPOs).
The new company, officially known as Knowledge Atlas Technology and traded overseas as Z.ai, set its offering price at HK$116.20 for more than 37 million shares, of which 10 percent was allocated to retail investors. The company plans to debut on January 8.
With rival Minimax Group still in the pipeline, Zhipu is on track to be the first Chinese AI LLM developer listed on the Hong Kong stock exchange.
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Zhipu expects net proceeds of HK$4.17 billion from its IPO, assuming no overallotment option is exercised, based on the offering price of HK$116.20 per share. The company’s post-listing market valuation is estimated at HK$51.16 billion.
The development comes as Chinese graphics processing unit (GPU) developers Moore Threads Technology and MetaX Integrated Circuits electrified the Shanghai capital markets in early December, surging 425 percent and 693 percent, respectively, in their debut.
The IPO push for Zhipu AI’s rival Minimax Group is still in the pipeline. Photo: Getty Images alt=The IPO of Zhipu AI’s rival Minimax Group is still in the works. Photo: Getty Images>
Prudential Brokerage associate director Alvin Cheung Chi-wai said Zhipu’s retail bookbuilding could attract more than 400,000 retail investors in Hong Kong amid strong investment sentiment in technology stocks. However, he warned that Zhipu’s first-day performance was unlikely to replicate the gains of Moore Threads and MetaX, citing differences in investment environments between Hong Kong and mainland China.
In December, dozens of Chinese tech companies accelerated their IPOs in Hong Kong, spanning sectors ranging from artificial intelligence and semiconductors to biotechnology.
Shanghai Biren Technology, the first of China’s “four little dragons” in GPU development to be listed in Hong Kong, is estimated to have attracted HK$459.68 billion in margin funding for its retail leg, oversubscribed by more than 1,893 times before booking completion ended at noon on Tuesday, according to data from online trading platform Futubull. Biren, which aims to raise up to HK$4.85 billion, will begin trading on January 2.