BEIJING/HONG KONG, Dec 16 (Reuters) – Chinese AI chip startup Biren Technology aims to launch a Hong Kong initial public offering in the coming weeks, four sources with knowledge of the matter said.
The IPO could raise $300 million, local Chinese media reported. One of the sources confirmed the number to Reuters.
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The Shanghai-based company, along with other domestic rivals, is banking on rapid growth as China seeks to develop domestic alternatives to U.S. semiconductors amid stringent export restrictions by Washington on advanced chips.
Biren could kick off the offering as early as this month and debut in January, said two of the sources.
According to a Monday notice from the China Securities Regulatory Commission (CSRC), Biren plans to issue up to 372.5 million shares in Hong Kong and its shareholders will convert 873.3 million onshore shares into Hong Kong-listed stock.
The sources declined to be identified as the information was confidential. Biren did not respond to a Reuters query for comment.
CHINA’S CHIP AMBITIONS
Beijing has prioritised building homegrown champions in graphics processing units (GPUs), which are critical for artificial intelligence development.
Its other investors include Qiming Venture Partners, IDG Capital, the venture arm of Hillhouse Investment, Russia-China Investment Fund, as well as Country Garden Venture Capital and New World Group, its website showed.
Bank of China International, CICC and Ping An Securities are the lead banks on the deal, the sources said.
Ping An declined to comment while the other two banks did not respond to requests for comment.
($1 = 7.0423 Chinese yuan)
Reporting by Beijing Newsroom and Kane Wu in Hong Kong; Additional reporting by Brenda Goh in Shanghai; Editing by Edwina Gibbs
Our Standards: The Thomson Reuters Trust Principles.
