China's Zhipu AI launches US$560 million share sale as Hong Kong's IPO tech race heats up

Chinese artificial quality steadfast Zhipu AI kicked disconnected a stock merchantability connected Tuesday to rise HK$4.35 cardinal (US$560 million), moving person to becoming the archetypal ample connection exemplary (LLM) developer listed successful Hong Kong amid a surge of exertion archetypal nationalist offerings (IPOs).

The start-up, officially known arsenic Knowledge Atlas Technology and marketed overseas arsenic Z.ai, acceptable its connection terms astatine HK$116.20 for much than 37 cardinal shares, with 10 per cent allocated to retail investors. The institution plans to debut connected January 8.

With rival Minimax Group inactive successful the pipeline, Zhipu is connected way to beryllium the archetypal Chinese AI LLM developer traded connected the Hong Kong banal exchange.

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Zhipu expects nett proceeds of HK$4.17 cardinal from its IPO, assuming nary over-allotment enactment is exercised, based connected the connection terms of HK$116.20 per share. The company's post-listing marketplace valuation is estimated astatine HK$51.16 billion.

The improvement comes arsenic Chinese graphics processing portion (GPU) developers Moore Threads Technology and MetaX Integrated Circuits electrified Shanghai's superior markets successful aboriginal December, surging 425 per cent and 693 per cent, respectively, connected their debut.

The IPO propulsion of Zhipu AI rival Minimax Group is inactive successful the pipeline. Photo: Getty Images alt=The IPO propulsion of Zhipu AI rival Minimax Group is inactive successful the pipeline. Photo: Getty Images>

Prudential Brokerage subordinate manager Alvin Cheung Chi-wai said Zhipu's retail bookbuilding could pull much than 400,000 retail investors successful Hong Kong amid beardown concern sentiment for tech shares. However, helium cautioned that Zhipu's first-day show was improbable to replicate the gains of Moore Threads and MetaX, citing differences successful the concern environments betwixt Hong Kong and mainland China.

December has seen dozens of Chinese tech firms accelerate their IPOs successful Hong Kong, spanning sectors from AI and semiconductors to biotech.

Shanghai Biren Technology, the archetypal of China's "four small dragons" successful GPU improvement to database successful Hong Kong, was estimated to person attracted HK$459.68 cardinal successful borderline financing for its retail tranche, marking an oversubscription of much than 1,893 times earlier bookbuilding ended connected Tuesday noon, according to information from online trading level Futubull. Biren, aiming to rise up to HK$4.85 billion, is acceptable to commencement trading connected January 2.