Biren, Chinese GPU Firm, Aims for up to $630M IPO in Hong Kong

Dec. 22 — Biren Intelligent Technology is planning an initial public offering in Hong Kong to raise as much as HKD4.9 billion (approximately USD630 million). This move makes the Shanghai-based company the third Chinese GPU manufacturer to seek a listing, following Moore Threads Technology and MetaX Integrated Circuits. The company is competing for market share against Nvidia and announced its IPO today.

The initiative highlights a rising trend among local GPU developers to access capital markets, driven by increasing demand for artificial intelligence computing. Biren intends to sell 247.7 million shares at an indicative price range of HKD17 to HKD19.6 (roughly USD2.20 to USD2.50) per share, projecting total proceeds between HKD4.2 billion and HKD4.9 billion, as detailed in its latest filing with the Hong Kong Stock Exchange.

The company plans to go public on Jan. 2 of next year. Approximately 85% of the funds raised will be dedicated to research and development of advanced computing solutions. Of this, 45% will go toward hardware upgrades and the development of next-generation general-purpose GPU chips, while 40% will support software platform enhancements, including expanding artificial intelligence training and inference models. The remaining capital will be allocated for commercialization and general business expenses, the filing stated.

Founded in 2019, Biren specializes in general-purpose GPUs and GPU-based intelligent computing solutions that provide essential processing power for AI applications. Heavy R&D investments have kept the company in a deficit; in the first half of this year, Biren reported a net loss of CNY1.6 billion (about USD227.3 million), representing an 80% increase from the same period last year. During the same timeframe, revenue grew 50% year-over-year to CNY58.9 million (USD8.4 million), according to the document.

Following the lead of Beijing-based Moore Threads, which went public on Shanghai’s Star Market on Dec. 5 and raised CNY8 billion, and Shanghai-based MetaX, which debuted on Dec. 17 with CNY4.2 billion raised, Biren aims to carve its place in the market. Shares of both competitors surged on their first trading days, with increases of 425% and 693%, respectively.

Similar to its industry peers, Biren faces stiff competition from global semiconductor giants. The prospectus reveals that Nvidia held a commanding 76% share of China’s AI chip market last year, with up to 98% in the general-purpose GPU segment. In comparison, Biren’s market share was just 0.16% and 0.2%, respectively.

Nonetheless, Biren is optimistic about the market’s rapid growth. With AI adoption accelerating, China’s intelligent computing chip market is forecast to grow from USD30.1 billion last year to USD201.2 billion by 2029, reflecting a compound annual growth rate (CAGR) of 46%. Within this sector, the general-purpose GPU market is expected to expand from USD23.5 billion to USD172.3 billion over the same period, with a CAGR of 49%, as per the company’s prospectus.