- With capital markets showing strong demand for China's AI boom, StepFun could list as early as this year.
- Last month, fellow AI unicorns MiniMax and Zhipu debuted on the Hong Kong Stock Exchange.
Chinese AI startup StepFun is considering an initial public offering (IPO) in Hong Kong that could raise up to $500 million, Bloomberg reported Wednesday, citing people familiar with the matter.
This comes amid strong demand in capital markets for China's AI boom, with the company potentially listing as early as this year, the report noted.
The Shanghai-based startup has held preliminary discussions with potential advisers about the share offering. Details including the exact fundraising amount and listing timeline remain under evaluation and could change, the sources added.
StepFun ranks among China's leading startups in the large language model (LLM) sector.
The company recently closed a new funding round exceeding RMB 5 billion ($731 million), backed by investors including China Life Private Equity Investment, Shanghai Pudong Venture Capital, and Tencent. This comes as China vigorously develops its domestic AI industry to secure a foothold in the fierce global tech race.
The IPO consideration comes during a window of opportunity for Chinese generative AI companies to list in Hong Kong.
Last month, fellow AI unicorns MiniMax and Zhipu landed on the Hong Kong Stock Exchange, becoming among the world's first generative AI companies to go public since ChatGPT's emergence and propelling Hong Kong's January IPO fundraising to a record high.
Despite recent global market volatility and selling pressure, the strong post-listing surges in both companies' stock prices underscore investors' continued strong interest in high-quality Chinese AI assets.
