Shanghai Biren Technology completed its initial public offering (IPO) on the Hong Kong stock exchange on Friday, January 2, 2026, marking the first listing in the financial hub for the year.
Market Performance
The company's shares concluded their first trading day at HK$34.46, representing a 76% increase from the offer price of HK$19.60. Shares opened at HK$35.70 and reached an intraday high of HK$42.88. In comparison, the benchmark Hang Seng Index recorded a 2.8% rise on the same day. Biren Technology was the third most actively traded stock on the Hong Kong bourse by turnover, with 150.7 million shares exchanged, totaling HK$5.52 billion ($707.7 million).
IPO Details
Biren Technology successfully raised HK$5.58 billion through the sale of 284.8 million H shares at HK$19.60 each, which was the upper limit of the marketed price range. Institutional investor demand for the offering was approximately 26 times the available shares, while the retail tranche was oversubscribed by about 2,348 times. At the offer price, the company's market capitalization was HK$46.9 billion, based on 2.396 billion outstanding shares.
Company Background and Industry Context
Founded in 2019, Shanghai Biren Technology specializes in the development of general-purpose graphics processing units (GPUs) and intelligent computing systems, catering to artificial intelligence (AI) and high-performance computing (HPC) applications. The company's co-founders include Zhang Wen, formerly a president at SenseTime, and Jiao Guofang, who previously held positions at Qualcomm and Huawei.
In 2022, Biren introduced its BR100 chip, which was positioned as a domestic alternative to advanced processors from U.S. AI leader Nvidia. The company's listing occurs amidst an environment where Chinese AI companies are seeking public offerings, influenced by domestic policy support and a focus on enterprise customer revenues, according to Winston Ma, an adjunct professor at NYU School of Law and former head of North America for China Investment Corporation (CIC). Li He, a partner at law firm Davis Polk, noted that the current trend of AI offerings reflects both investor interest and issuer requirements.
Future Plans and Risks
Biren Technology's IPO prospectus indicates that the majority of the raised capital will be allocated towards research and development and commercialization efforts. The prospectus also identifies risks associated with U.S. export controls, following the company's inclusion on Washington's Entity List in October 2023, which restricts its access to certain technologies.