Chinese artificial intelligence developer Zhipu is considering a sizeable secondary share sale in Hong Kong that could generate several billion U.S. dollars, according to people familiar with the matter. The company, which trades in Hong Kong as Knowledge Atlas Technology, is reported to be working with financial advisers on a potential placement.
Sources indicate that the contemplated offering could occur as soon as next month, once a six-month lock-up period tied to its initial public offering ends on July 8. If completed at the scales being discussed, the proposed transaction would markedly exceed the roughly $558 million Zhipu secured in its Hong Kong IPO earlier this year.
Since listing in January, the companys shares have experienced a dramatic increase, rising approximately 2,000 percent and pushing the firm's market capitalization above HK$1 trillion, or about $128 billion. The sizeable valuation and recent share gains form the backdrop to the current fundraising discussions.
In parallel with the possible Hong Kong placement, Zhipu is also reported to be exploring an A-share listing in Shanghai as a route to attract further capital. The additional funding is intended to support continued development of the companys artificial intelligence models. However, discussions are described as ongoing and may not culminate in either a placement or a Shanghai listing.
The contemplated fundraising effort is taking shape amid robust investor interest in Chinese technology and AI-related stocks. That demand is said to be supported by policy steps designed to broaden AI adoption and to relax certain listing requirements, factors that have helped sustain appetite for deals in the sector.
On the product front, Zhipu recently rolled out its flagship GLM-5.2 artificial intelligence model and has released the technology as open-source. The move is positioned as a strategy to draw developers and expand the companys ecosystem around its AI tools.
At this stage, the companys deliberations over both the Hong Kong placement and a potential Shanghai listing are active but not conclusive. Market participants and observers will be watching the July 8 lock-up expiry and any subsequent announcements from the company or its advisers.