China's Zhipu AI moves closer to HK IPO, eyes $300m raise

Zhipu AI, a Beijing-based AI company, has moved closer to a Hong Kong IPO after passing a listing hearing and submitting documents to the exchange.

The listing could raise around US$300 million.

Founded in 2019 by Tsinghua University professors, Zhipu develops large language models and operates overseas under the name Z.ai.

The company has raised about US$1.2 billion across eight funding rounds, with its latest valuation estimated at 40 billion yuan (US$5.7 billion).

Zhipu has yet to turn a profit and plans to list under chapter 18C.

🧠 Food for thought

Implications, context, and why it matters.

First half 2025 revenue reached 190.9 million yuan 1. Chapter 18C, a Hong Kong listing regime for Specialist Technology Companies that permits pre-profit listings, uses audited full-year HKD revenue with HK$250 million as the Commercial bar, while Pre-Commercial applicants must keep R&D spend ratios of 50% below HK$150 million or 30% between HK$150 million and HK$250 million 1.
The adjusted net loss hit 1.75 billion yuan, about nine times half-year revenue, driven by R&D 2. The filed prospectus gave no fundraising target or timetable 2, and HKEX had no related documents at last check 3.
Pre-Commercial applicants must set out a credible path to monetization and hold working capital, including initial public offering (IPO) proceeds, of at least 125% of group costs for 12 months from the listing document date 1. Investors cannot test those items until the Post-Hearing Information Pack (PHIP), the near-final prospectus, is public 4.
Valuation sat near 40 billion yuan after a late 2025 round that roughly doubled the mark from a year earlier 2. The report gave no revenue mix or model performance detail, which clouds any read on growth durability.

A successful Zhipu float could spur AI and chip IPOs 3. Candidates include MiniMax and Montage Technology, plus OmniVision, Biren Technology, and Iluvatar CoreX 3. That wave would open work for IPO advisors, investor relations firms, and compliance shops focused on Chapter 18C.
Vendors of compute gear, cloud services, or AI tools can watch HKEX announcements and PHIP releases tied to confidential filings to find prospects 4. Investors can use the Technology Enterprises Channel on HKEX, with an announcement on the same day as the PHIP under the confidential route, which enables quick review before pricing 4.