Shares of Shanghai Biren Technology Co surged nearly 119 percent in their trading debut, on track for the best first-day performance since 2021 among Hong Kong listings that raised at least $700 million.
The artificial intelligence (AI) chip designer’s stock climbed to as high as HK$42.88 after the initial public offering (IPO) was priced at HK$19.60, the top of an indicative range, raising $717 million in one of hottest sectors in global equity markets. Investor demand was strong, with the retail portion of the deal subscribed more than 2,300 times.
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. Apart from the global interest in all things AI, a push by China to support homegrown technology has further boosted investor sentiment.
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Shanghai Biren’s strong start likely augurs well for two other AI-related stocks — Minimax Group Inc and Knowledge Atlas Technology JSC Ltd, better known as Zhipu — that are set to list in the Asian financial hub next week.
As the first GPU-focused stock to list in Hong Kong, Shanghai 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.”
For all Hong Kong listings that raised $700 million or more, Shanghai Biren’s first-day performance was poised to be the best since Kuaishou Technology’s shares surged 161 percent in their trading debut in early 2021.
Broadly, Hong Kong listings of this size between 2020 to 2025 have 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 percent 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.
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.
