Biren Technology Aims for $300M IPO in Hong Kong to Strengthen AI Chip Sector

Post by : Bianca Suleiman

Shanghai's Biren Technology is preparing for its debut on the Hong Kong stock exchange with an initial public offering (IPO) expected to raise up to $300 million, as reported by local media and Reuters. This initiative is part of China's strategy to cultivate domestic semiconductor players amid ongoing U.S. restrictions on advanced chip exports.

Established in 2019 by Zhang Wen, a former leader at AI face-recognition giant SenseTime, Biren has swiftly become known for its high-performance chips. Its BR100 chip, launched in 2022, is said to match the performance of leading Nvidia GPUs, marking Biren as a contender in the competitive AI hardware market.

The IPO, which has received approval from the China Securities Regulatory Commission (CSRC), will transform 873.3 million onshore shares into stocks listed in Hong Kong, with the total issuance potentially valued at HKD 372.5 billion. Initially, Biren was rated at 14 billion yuan (~$2 billion), with backing from significant investors such as the Guangdong and Shanghai governments, Qiming Venture Partners, Hillhouse Investment, and key real estate firms like Country Garden Venture Capital and New World Group.

China's emphasis on developing its GPU manufacturers is in harmony with its nationwide AI strategy, urging local firms to lessen dependence on U.S. technologies. Biren aspires to establish a comprehensive AI ecosystem, positioning itself against global leaders including Nvidia while bolstering domestic innovation.

This forthcoming IPO is anticipated to draw parallels with recent market entries such as Moore Threads and MetaX, emphasizing the dynamic landscape of China's AI chip industry. As Biren gears up for this pivotal moment, industry observers regard it as a significant step in China's mission for technological independence and global AI leadership.