This article first appeared on GuruFocus .
Chinese artificial-intelligence model maker Zhipu, which trades in Hong Kong as Knowledge Atlas Technology, is seeking to raise about $4 billion through a new share sale after its stock climbed almost 1,500% since its January listing. The company is offering 19.8 million shares at HK$1,588 to HK$1,698 each, according to deal terms, implying a discount of as much as 13% to Wednesday's close. Investors may view the move as a major test of demand for high-growth Chinese AI names after one of the sharpest post-listing rallies in Hong Kong.
Zhipu plans to use the proceeds for research and development, business expansion, investments, mergers and acquisitions, capital structure optimization, working capital and other general corporate purposes. China International Capital Corp., a Chinese investment bank, is acting as the sole overall coordinator for the deal. The timing appears notable because Zhipu recently launched its flagship GLM-5.2 AI model and is making the technology free and open for developers to build upon, a strategy that could help attract more developers to its platform and possibly support broader global adoption of its tools.
The share sale also comes as Hong Kong continues to attract large capital raises from Chinese technology and advanced manufacturing companies. Contemporary Amperex Technology Co. ( CYATY ), a battery maker, previously raised $5 billion in April after a similarly sized share sale in May 2025, while Shanghai Iluvatar CoreX Semiconductor Co., a semiconductor company, is seeking about $850 million from a Hong Kong share sale. Shanghai Biren Technology Co. also recently raised about $900 million through a new share placement, suggesting investors may be watching whether Zhipu's deal can sustain momentum across China-linked AI and chip-related listings.
