Shares of Shanghai Biren Technology Co, an artificial intelligence (AI) chip designer, jumped 82 percent in their trading debut in Hong Kong on Friday after its initial public offering (IPO) raised $717 million in one of the market’s hottest sectors.
The stock opened at HK$35.70 after the IPO was priced at HK$19.60 — the top of an indicative range — amid strong demand from investors. The retail portion of the offering was subscribed more than 2,300 times. Shares had earlier surged in Hong Kong’s gray market on Wednesday, pointing to a solid official debut.
The developer of graphics processing units used to train and run AI models makes its debut amid a wave of blockbuster listings in the sector, thanks to a global boom. A push by Beijing to support homegrown technology has further boosted sentiment.
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As the first GPU-focused stock to list in Hong Kong, Biren Technology “enjoys scarcity value and high market attention,” according to Kenny Ng, a strategist at China Everbright Securities International Co. “The industry is in a flourishing stage, with many firms striving for breakthroughs and significant growth potential.”
Hong Kong listings that raised $700 million or more between 2020 to 2025 generated a weighted-average gain of nearly 23 percent on their first day, according to data compiled by Bloomberg.
Meanwhile, debuts by Chinese chipmakers this year on the mainland have been far more impressive.
Last month in Shanghai, MetaX Integrated Circuits Shanghai Co. soared 693% on its first day of trading, tracking Moore Threads Technology Co.’s stellar debut earlier. The firms, including Biren, are part of China’s “Four Little Dragons” in the GPU space — seen as contenders to pick up market share left by Nvidia Corp.’s retreat.
Founded in 2019 by Zhang Wen, former president of SenseTime Group Inc., Biren has been gaining traction among major Chinese firms. In 2022, it claimed “setting a new record in global computing power” with its first general-purpose GPU.
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A major setback came just a year later when the firm was added to a US trade restriction list requiring exporters obtain a government license before shipping to Biren. Washington argued its chip curbs are necessary to keep advanced technology out of China’s military hands.
China’s ambitions to grow its at-home chips sector have accelerated this year as Beijing resolves to reduce its reliance on foreign players given increasing trade tensions. Officials are now considering a package of incentives worth as much as $70 billion to bankroll the sector.
In its prospectus, Biren said that proceeds from the offering will be used toward research and development of its computing solutions. The Shanghai-based company posted a 1.6 billion yuan ($228.9 million) net loss in the first six months of the year.
