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Chinese artificial intelligence firm Zhipu AI kicked off a share sale on Tuesday to raise HK$4.35 billion (US$560 million), moving closer to becoming the first large language model (LLM) developer listed in Hong Kong amid a surge of technology initial public offerings (IPOs).
The start-up, officially known as Knowledge Atlas Technology and marketed overseas as Z.ai, set its offer price at HK$116.20 for more than 37 million shares, with 10 per cent 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 traded on the Hong Kong stock exchange.
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Zhipu expects net proceeds of HK$4.17 billion from its IPO, assuming no over-allotment option is exercised, based on the offer 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 Shanghai’s capital markets in early December, surging 425 per cent and 693 per cent, respectively, on their debut.
The IPO push of Zhipu AI rival Minimax Group is still in the pipeline. Photo: Getty Images alt=The IPO push of Zhipu AI rival Minimax Group is still in the pipeline. 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 for tech shares. However, he cautioned that Zhipu’s first-day performance was unlikely to replicate the gains of Moore Threads and MetaX, citing differences in the investment environments between Hong Kong and mainland China.
December has seen dozens of Chinese tech firms accelerate their IPOs in Hong Kong, spanning sectors from AI and semiconductors to biotech.
Shanghai Biren Technology, the first of China’s “four little dragons” in GPU development to list in Hong Kong, was estimated to have attracted HK$459.68 billion in margin financing for its retail tranche, marking an oversubscription of more than 1,893 times before bookbuilding ended on Tuesday noon, according to data from online trading platform Futubull. Biren, aiming to raise up to HK$4.85 billion, is set to start trading on January 2.
Ahead of its IPO, Zhipu completed eight fundraising rounds worth more than 8.3 billion yuan (US$1.2 billion), backed by tech giants including Meituan, Alibaba Group Holding, Tencent Holdings and Xiaomi, as well as leading investment funds. Alibaba owns the South China Morning Post.
General GPU maker Shanghai Iluvatar CoreX Semiconductor and surgery robot maker Edge Medical also began share sales on Tuesday, raising about HK$3.68 billion and HK$1.2 billion, respectively. Iluvatar CoreX priced its shares at HK$144.60 each for more than 25.43 million shares, while Edge Medical planned to issue 27.7 million shares at HK$43.24 apiece.
Both are scheduled to debut in Hong Kong alongside Zhipu on January 8.
Hong Kong’s crowded IPO pipeline and the recent share price declines of some newly listed companies have raised concerns about market liquidity. Cheung said the market could still absorb IPOs raising several billion dollars, but warned liquidity would be tested if any mega deals exceeding HK$10 billion were launched.
This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP’s Facebook and Twitter pages. Copyright © 2025 South China Morning Post Publishers Ltd. All rights reserved.
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