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A Shanghai-based company specializing in large language models, known for its popular AI application Hailuo AI, is targeting a Hong Kong listing with an initial public offering valued at up to HKD50.4 billion (approximately USD6.5 billion). The IPO is set to take place on January 9.
According to its recent prospectus, the company anticipates net proceeds of around HKD3.8 billion (about USD490 million) from the global offering. Of this amount, roughly 90 percent will be invested in research and development over the next five years, focusing on advancing its large language models and developing AI-native products. The remaining 10 percent will be used for working capital and general corporate needs.
This filing comes just two days after another Chinese AI company, Zhipu Huazhang Technology, published its own prospectus. Both companies are considered among China’s leading AI innovators and are moving almost simultaneously toward public market listings.
The company plans to issue 25.4 million shares at a price between HKD151 and HKD165 (USD19.40 to USD21.20) each, valuing the offering at no more than HKD50.4 billion, according to the stock exchange filing. It has secured commitments from 14 cornerstone investors, including Aspex Management, Eastspring Investments, Mirae Asset Financial Group, Alibaba Group Holding, and E Fund Management, with total subscriptions reaching approximately HKD2.7 billion.
Founded in 2022, the company focuses on developing general-purpose AI models. Using its in-house large language models, it has built a portfolio of AI products serving both consumer and enterprise clients. These include Talkie, a virtual character chatbot, and Xingye, a virtual character generator, along with an open platform service for businesses and developers.
As of September, the company reported more than 212 million individual users across over 200 countries and regions. In the first nine months of the current year, revenue nearly tripled compared to the previous year, with international markets contributing over 70 percent of total revenue.
In 2023, the company reported revenue of USD3.5 million, which grew to USD30.5 million in 2024—an increase of nearly nine times. By September 30, total revenue had reached USD53.4 million, almost three times higher than the previous year.
Despite these growth figures, the company remains unprofitable, with net losses of USD269 million in 2023 and USD465 million in 2024—amounting to 78 and 15 times its annual revenue, respectively. As of September 30, the loss for the year stood at USD512 million, roughly nine times its revenue, while the adjusted net loss under non-IFRS standards was USD186 million.
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