Another AI chip stock nearly doubles on listing in Hong Kong after 2,300x retail subscription to IPO

Shares of Shanghai Biren Technology Co., a chip designer for Artificial Intelligence, surged as much as 82% during its listing in Hong Kong on Friday, January 2.

The company had raised $717 million through its IPO, capitalizing on the hot-AI trend, which has seen investors making a beeline for anything that has semiconductors, chip or AI in its name or business.

Retail investors put in bids 2,300 times higher than the total number of shares that were reserved for them. The stock began trading at HK$35.7, in comparison to its issue price of HK$19.6. A strong debut was in the offing as the stock had surged in the unlisted grey market as well before its listing.

Shanghai Biren Technology is a developer of graphics processing units (GPUs), which are used to train and run AI models. The stock joined the list of companies that have recently seen frenzied surge in their share price after listing, aided by the global AI boom. China's plans to support homegrown technology has further boosted sentiments.

MetaX Integrated Circuits Shanghai Co. surged 693% on their trading debut recently, while Moore Threads Technology also had a similar debut.

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.”

According to Bloomberg data, Hong Kong listings that have raised $700 million or more between 2020 and 2025 generated a weighted-average gain of nearly 23% on their listing day.

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.

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.

(With Inputs From Agencies)