Key Takeaways:
Shengshu Technology, the Alibaba-backed AI video platform, is considering a Hong Kong listing next year that could raise more than $500 million.
The company is working with CICC and CITIC Securities on the offering, Bloomberg reported, citing people familiar with the matter.
Shengshu said in April it raised RMB2 billion in a funding round led by Alibaba. Early backers include Qiming Venture Partners, Baidu and a Beijing municipal government fund.
Founded in March 2023, Shengshu developed Vidu, China's first fully self-developed AI video generation model, applied in advertising, animation and film production. The listing would test investor appetite for Chinese AI startups as global capital chases generative AI.
The deal would add to a pipeline of Hong Kong listings from Chinese technology companies seeking public capital. A raise above $500 million would place Shengshu among the larger AI-related IPOs in the city, which has pushed to attract tech listings after a slowdown in new offerings.
Vidu competes in a fast-growing segment where Chinese developers including Kuaishou and ByteDance have launched rival video generation tools. Shengshu's pitch to investors centers on its fully self-developed model, a distinction that matters as Beijing encourages domestic AI independence.
The company's April funding round, led by Alibaba, came as Chinese AI firms draw record venture capital. The backing of a Beijing municipal government fund also points to state support for the sector, a factor that can ease regulatory scrutiny of a Hong Kong listing.
The listing timeline and final deal size remain subject to market conditions and regulatory approval. Investors will watch for the offer price and cornerstone investor commitments, which typically anchor demand for Hong Kong IPOs. A successful debut would give Alibaba and Baidu a mark-to-market return on their early stakes in one of China's most prominent AI video developers.
This article is for informational purposes only and does not constitute investment advice.
