NewsGlobalZhipu AI Makes Hong Kong Debut Following $558 Million IPO as China's First Major Generative AI Public ListingZhipu AI Makes Hong Kong Debut Following $558 Million IPO as China's First Major Generative AI Public Listing
Zhipu AI has successfully debuted on the Hong Kong Stock Exchange following a $558 million IPO, becoming China's first major generative AI startup to go public. The company's shares were oversubscribed by more than 1,159 times among retail investors and rose 35% in gray market trading. Founded in 2019 by Tsinghua University researchers and backed by Alibaba and Tencent, Zhipu reported revenue of ₹2,61,67,20,000 (312.4 million yuan) in 2024 and plans to invest 70% of IPO proceeds in AI model research and development.
*this image is generated using AI for illustrative purposes only.
Knowledge Atlas Technology JSC Ltd., better known as Zhipu AI, has made its trading debut on the Hong Kong Stock Exchange following a successful $558 million initial public offering, marking a significant milestone as China's first major generative artificial intelligence startup to go public. The Beijing-based company's shares began trading on Thursday after generating exceptional investor interest across both institutional and retail segments.
IPO Performance and Market Reception
The company's public offering demonstrated remarkable investor appetite for Chinese AI ventures. Key IPO metrics highlight the strong market reception:
| Parameter: | Details |
|---|---|
| Total IPO Value: | $558 million |
| Shares Offered: | 37.4 million |
| Issue Price: | HK$116.20 ($14.90) per share |
| Retail Oversubscription: | 1,159 times |
| Gray Market Performance: | +35% |
| Market Capitalization: | $6.60 billion |
Analyst Douglas Kim from Smartkarma expressed optimism about the listing, estimating shares could trade at nearly double the issue price. The strong performance reflects investor confidence in Zhipu's position as a leading player in China's competitive AI landscape.
Company Background and Financial Performance
Founded in 2019 by researchers from China's prestigious Tsinghua University, Zhipu AI has established itself as a pioneer in the nation's artificial intelligence industry. The company has secured backing from major technology conglomerates including Alibaba Group Holding Ltd. and Tencent Holdings Ltd., alongside several local government funds.
This strategic support has enabled Zhipu to secure contracts with state-owned enterprises, which typically prefer building customized AI infrastructure rather than utilizing public cloud services. The company primarily serves domestic institutions and reported revenue of ₹2,61,67,20,000 (312.4 million yuan) in 2024.
Strategic Investment Plans
According to the company's prospectus, Zhipu plans to allocate 70% of the IPO proceeds toward research and development of general-purpose large AI models. This significant investment in R&D underscores the company's commitment to competing with international AI leaders like OpenAI Inc. and Anthropic PBC, despite facing challenges from US export controls restricting access to advanced semiconductor chips.
Broader Market Context
Zhipu's listing occurs amid a surge of Chinese semiconductor and AI companies seeking public funding. The timing coincides with several other significant debuts in the sector:
- Graphics processing unit maker Shanghai Iluvatar CoreX Semiconductor Co. also debuted on Thursday
- Rival AI company MiniMax Group Inc. is scheduled to list Friday following a $619 million IPO
- Chip designer Shanghai Biren Technology Co. delivered the strongest first-day performance since 2021 among major Hong Kong listings
Minyue Liu, associate investment director at Fidelity International, noted that this activity "reflects robust investor interest as China continues to strengthen domestic AI capabilities and broader technology leadership." However, she cautioned that "investor enthusiasm has been accompanied by an ongoing debate around the risk of an AI-related market bubble."
Industry Outlook
Sanford C. Bernstein analysts, led by Qingyuan Lin, highlighted the growing recognition of China's AI development progress, stating that "China AI was the new narrative in 2025 and will likely be even stronger in 2026." The market has begun "to recognize that China's AI development is only months behind global leaders," suggesting continued investor interest in the sector despite ongoing technological and regulatory challenges.
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