Shanghai Biren Technology Achieves Stellar IPO in Hong Kong
Shares of Shanghai Biren Technology, an innovative Chinese AI chip designer, surged by an astonishing 76% during its debut on the Hong Kong Stock Exchange, marking the financial hub’s first listing of 2026.
The firm’s shares commenced trading at HK$35.70, peaked at an impressive HK$42.88, and concluded the day at HK$34.46, significantly higher than the initial offering price of HK$19.60.
This remarkable performance eclipsed the benchmark Hang Seng Index, which enjoyed a modest increase of 2.8%.
Biren also distinguished itself as the third most actively traded stock by turnover, with a staggering 150.7 million shares exchanging hands, valued at HK$5.52 billion (approximately $707.7 million).
The exceptional debut is reminiscent of a buoyant year for Hong Kong’s equity market in 2025, and it signals a forthcoming surge of IPOs in the chip and AI sectors as China amplifies its endeavors to bolster domestic alternatives in light of restrictive U.S. technology export policies.
Winston Ma, an adjunct professor at NYU School of Law and former head of North America for China Investment Corporation, noted that “Chinese AI startups are accelerating their public offerings more swiftly than U.S. counterparts, buoyed by supportive domestic policies, clear revenue pathways from enterprise clients, and importantly, comparatively lower valuations in the current IPO landscape.”
Li He, a partner at the law firm Davis Polk and an expert on AI IPOs, including Biren’s, highlighted the collective confidence among investors and the urgent need for issuers.
“AI is intrinsically transformative, igniting substantial investor enthusiasm,” He remarked.
Biren secured HK$5.58 billion by issuing 284.8 million H shares at HK$19.60 each, aligning with the upper end of its targeted range.
Institutional demand approached an astounding 26 times the available shares, while the retail segment was oversubscribed nearly 2,348 times, as per exchange documents.
With the offer price in place, Biren’s market capitalization was estimated at HK$46.9 billion, predicated on its 2.396 billion outstanding shares.
Established in 2019, Biren specializes in developing general-purpose graphics processing units (GPUs) and intelligent computing systems tailored for artificial intelligence and high-performance computing applications.
The company’s co-founders include Zhang Wen, a former president at SenseTime, and Jiao Guofang, who has previously held positions at Qualcomm and Huawei. Biren garnered attention in 2022 with its BR100 chip, positioned as a domestic contender to U.S. AI leader Nvidia’s advanced processors.
Proceeds from the IPO are primarily earmarked for research and development, alongside commercialization initiatives, as outlined in its prospectus.
The prospectus raised flags concerning potential risks stemming from U.S. export regulations, following the company’s addition to Washington’s Entity List in October 2023, which constricts access to particular technologies.
It also underscored competitive pressures while illuminating opportunities arising from China’s push toward technological self-sufficiency and supportive policy frameworks.
Prominent cornerstone investors include 3W Fund, Qiming Venture Partners, and Ping An Life Insurance, based on information from the prospectus. Alex Zhou, managing partner at Qiming Venture Partners, remarked, “This successful listing not only signifies a pivotal development in the company’s growth trajectory but also encapsulates the advancement of China’s technology entrepreneurship toward a new phase emphasizing original innovation.”
Hong Kong’s Thriving IPO Landscape
In the preceding year, Hong Kong’s stock market witnessed an extraordinary influx of capital, with approximately $36.5 billion raised from 114 new listings, the highest since 2021 and more than triple the amount raised in 2024, according to year-end data from LSEG.
This resurgence, propelled by a wave of AI and semiconductor IPOs, is anticipated to invigorate deal flow throughout 2026.
As of January 1, seven companies have submitted initial applications, including xTool Innovate, which has filed for a main board listing and appointed Morgan Stanley and Huatai Financial Holdings as its coordinators.
In a separate development, Chinese internet search powerhouse Baidu announced that its AI chip division, Kunlunxin, has officially submitted a Hong Kong IPO application, confirming earlier reports from December.
Hong Kong’s IPO pipeline remains populated with AI startups and semiconductor firms, with Zhipu AI and Iluvatar CoreX slated to make their public debuts on January 8.
The sustainability of this burgeoning AI IPO boom will hinge on whether global investors, such as sovereign wealth funds from the Middle East, are willing to engage in a transformative shift of AI dominance, focusing on immediate enterprise integration rather than long-term artificial general intelligence research, as suggested by Ma.
Source link: M.economictimes.com.
