Chinese AI Chipmaker Biren Soars 82% in Hong Kong Debut, Launching 2026 IPOs

SINGAPORE/HONG KONG, Jan 2 (Reuters) - Shares of Shanghai Biren Technology, a Chinese AI chip designer, surged 82.1% on their first day of trading in Hong Kong on Friday, marking the financial center's inaugural listing of 2026. The stock started at HK$35.7, significantly surpassing the initial offering price of HK$19.60, reaching a peak of HK$40 shortly after. This impressive debut follows a record year for Hong Kong's equity market in 2025 and suggests an upcoming wave of AI and semiconductor listings, as China intensifies efforts to develop domestic chip alternatives in reaction to U.S. technology export restrictions. Biren successfully raised HK$5.58 billion ($717 million) through the sale of 284.8 million H shares at the peak offer price. Institutional interest was robust, with demand nearly 26 times the shares available, while the retail allocation was oversubscribed by an astounding 2,348 times, according to exchange filings. At the offering price, Biren's market capitalization is valued at HK$46.9 billion, based on 2.396 billion outstanding shares. Established in 2019, Biren specializes in general-purpose graphics processing units (GPUs) and intelligent computing systems for AI and high-performance computing, co-founded by Zhang Wen, a former president at SenseTime, and Jiao Guofang, who has experience with Qualcomm and Huawei. The company gained recognition in 2022 with its BR100 chip, positioned as a domestic competitor to advanced processors from U.S. AI leader Nvidia. Most of the funds raised from the IPO are set to be allocated for research, development, and commercialization, according to its IPO prospectus, which also noted risks related to U.S. export controls, as Biren was added to the Entity List in October 2023, restricting its access to specific technologies. The prospectus addressed competitive challenges while pointing to opportunities arising from China's initiative for technological self-sufficiency and favorable policies. Notable cornerstone investors include 3W Fund, Qiming Venture Partners, and Ping An Life Insurance, as detailed in the prospectus. (Reporting by Yantoultra Ngui in Singapore and Donny Kwok in Hong Kong; Editing by Christopher Cushing)