ShengShu Technology, a Beijing-based AI video startup backed by Alibaba Group Holding, is considering a Hong Kong initial public offering that could raise more than US$500 million next year, people familiar with the matter said.

The company, which makes the Vidu video generator, is working with China International Capital Corp. and Citic Securities Co. on the share sale, but the size and timing may still change.

ShengShu was founded in March 2023 in Beijing’s Haidian district.

Vidu offers text-to-video generation through subscriptions and an application programming interface for enterprise and developer customers.

In April, ShengShu said it raised 2 billion yuan (US$297 million) in a funding round led by Alibaba Cloud, with TAL Education and Baidu Ventures participating, after a 600 million yuan (US$89 million) round about two months earlier.

The company did not disclose its valuation.

The plan would fit Hong Kong rules that permit listings by AI specialist-technology and pre-commercial companies, subject to track-record, research and development, investor, and commercialization tests.

🔗 Source: Bloomberg