HK IPO: Biren Technology Subscription Analysis

Six new stocks have been drawn, and Insilico was completely wiped out, what bad luck...

Now there are rumors that May Day will bring an upset.

The reality is that capital has already moved faster, with Meilian's margin being overtaken, showing its volatility.

Let me mention the sad stock Nobikkan again, which has risen nearly 4 times since its listing.

Once Yingen Bio-B brought Bio-B shares into a golden age, but who would have thought

Huaren would bring Bio-B down from its pedestal, and Aitai would send it to the grave.

Now, is Nobikkan opening the prelude to AI?

Insilico AI drug development + Vision Physical AI

Wait and see.

Biren Technology was founded in 2019 and is a company that develops general-purpose graphics processor (GPGPU) chips and GPGPU-based intelligent computing solutions, providing the necessary foundational computing power for artificial intelligence (AI). By integrating self-developed GPGPU-based hardware and the proprietary BIRENSUPA software platform, the company's solutions support the training and inference of AI models in a wide range of applications from the cloud to the edge.

The estimated net proceeds from the global offering are approximately HK$4.351 billion, which will be allocated as follows: about 85% will be used for future R&D of the company's intelligent computing solutions, about 5% for the commercialization of intelligent computing solutions, and about 10% for working capital and general corporate purposes.

This IPO information:

The global offering consists of 248 million shares, with a public offering of 12.3848 million shares, 200 shares per lot, and an entry fee of HK$3,959.54. After the offering, the total market capitalization will be HK$46.236 billion. The offering is conducted under the Chapter 18C mechanism, with cornerstone subscriptions of HK$2.897 billion, accounting for 63.96%. It's been a long time since we've seen cornerstone subscriptions exceed 50%. The margin multiple is 514.23 times, and it is estimated that 280,000 to 360,000 people will participate, with a one-lot winning rate of about 15%.

The company is still in a state of continuous losses. Revenue for 2022-2024 was RMB 499,000, RMB 62.03 million, and RMB 337 million, respectively. As of June 30, 2025, revenue was RMB 58.903 million, an increase of 49.88% compared to RMB 39.298 million in the same period in 2024.

Gross profit for 2022-2024 was RMB 499,000, RMB 47.403 million, and RMB 179 million, respectively. As of June 30, 2025, gross profit was RMB 18.769 million, a decline of 32.73% compared to RMB 27.903 million in the same period in 2024.

Losses for 2022-2024 were RMB -1.474 billion, RMB -1.744 billion, and RMB -1.538 billion, respectively. As of June 30, 2025, the loss was RMB -1.6 billion, compared to a loss of RMB -888 million in the same period in 2024.

Before the IPO, Biren completed a total of 10 rounds of financing. After the last round of investment, the valuation was RMB 20.915 billion, approximately HK$23.039 billion, a discount of 40.37% to the offering price. The lock-up period is 12 months.

A total of 27 cornerstone investors subscribed to US$373 million, accounting for 59.72% at the upper price limit. The screen is full of the luxury of cornerstone investors, with a lock-up period of 6 months. This offering is jointly sponsored by CICC, Ping An Capital, and BOC International, with CICC acting as the stabilizing agent.

The GPU industry can be described as the hottest sector, with explosive growth in market size. However, the market share is basically monopolized by NVIDIA. In China's AI computing chip industry, NVIDIA accounts for 76.2%, and Huawei HiSilicon accounts for 18.2%. In the GPGPU industry, NVIDIA accounts for 97.6%, AMD accounts for 0.4%, and others are just small players.

The four leading domestic general-purpose GPU companies currently have the following data:

Moore Threads and Muxi have already taken the lead in listing on the STAR Market. Their money-making effect at the time of listing was evident to all. Based on the closing price on the first day, Moore earned RMB 243,100 per lot, and Muxi earned RMB 362,600 per lot.

Biren Technology is listing on the Hong Kong Stock Exchange this time, with one lot earning HK$3,920, which is obviously not as violent as those two, but the winning rate is dozens of times higher than the previous two, meaning everyone has a chance. Don't ask if it's worth subscribing to. Based on Muxi's current market value as a benchmark:

30% discount: 2483.26*0.3=74.5 billion RMB, approximately HK$82.5 billion, a gain of 78.43%.

40% discount: 2483.26*0.4=99.3 billion RMB, approximately HK$110 billion, a gain of 137.91%.

50% discount: 2483.26*0.5=124.2 billion RMB, approximately HK$137.7 billion, a gain of 197.82%.

60% discount: 2483.26*0.6=149 billion RMB, approximately HK$165.1 billion, a gain of 257.08%. The finale of the 2025 Hong Kong IPO season won't be like Insilico, where people waited eagerly only to get a zero. Biren has sufficient supply this time, and active participation means everyone has a chance. Consider it a red envelope from the Hong Kong Stock Exchange to the IPO subscribers who have been busy all year.

$BIREN TECH(06082.HK) 

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