Beijing-based generative-AI startup Knowledge Atlas Technology JSC Ltd, known as Zhipu, jumped more than 13 percent to HK$131.5 ($17) on its Hong Kong trading debut on Thursday, marking the first major Chinese generative-AI startup to go public.
Zhipu’s market capitalization now stands at about HK$57.89 billion. The company’s Hong Kong public offering was oversubscribed by more than 1,159 times, drawing enthusiastic market response.
According to its prospectus, it plans to use 70 percent of the IPO proceeds for the research and development of general-purpose AI large models, including pre-trained large models, deep reasoning models, and AI agents.
The remaining funds will be allocated to optimizing the “Model as a Service” platform, expanding the business partner network, and making strategic investments.
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Zhipu is aiming to become an internationally leading large model enterprise in 2026 and will soon launch its new-generation model GLM-5, stated Tang Jie, the company’s co-founder and chief scientist, in an internal letter released on Thursday.
He explained that with further scaling and comprehensive technological advancements, GLM-5 will enable AI to assist users in accomplishing more “real-world tasks”. Zhipu unveiled its large model GLM-4.7 in late December, which Tang said has brought the firm’s model capabilities in line with those of leading international models.
Zhipu, founded in 2019 by researchers from Tsinghua University in Beijing, is celebrated as a pioneer in the nation’s AI industry. It is backed by Alibaba Group Holding Ltd, Tencent Holdings Ltd and several local government funds.
Speaking at the listing ceremony, Zhipu’s co-founder and chairman, Liu Debing, said enabling machines to think like humans has been the company’s aim since its establishment, and Zhipu will continue to explore innovative large models for artificial general intelligence.
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Bloomberg quoted Douglas Kim, who assigned Zhipu a valuation of HK$223 per share based on a target price-to-sales multiple of 100 times.
MiniMax, another AI company based in Shanghai, is set to debut on the Hong Kong stock exchange on Friday after its offering was oversubscribed by 1,209 times.
The benchmark Hang Seng Index declined 1.17 percent on Thursday to end at 26,149.31. The Hang Seng Tech Index fell 1.05 percent, while the Hang Seng China Enterprises Index dropped 1.09 percent.
Contact the writer at akirawang@chinadaily.com
