ShengShu Technology explores Hong Kong IPO for over $500 million

Investing.com -- ShengShu Technology, an artificial intelligence video platform backed by Alibaba Group Holding Ltd., is exploring a Hong Kong initial public offering that could raise more than $500 million, Bloomberg reported Tuesday.

The company, which operates the Vidu video generator, has engaged China International Capital Corp. and Citic Securities Co. to work on the planned share sale. The IPO may occur next year, according to the report.

Discussions remain in progress and details including the offering size and timing may change, the report noted.

Vidu serves multiple sectors including advertising, animation and film production. The platform competes in China's AI video market alongside established technology companies such as ByteDance Ltd., Alibaba and Kuaishou Technology, as well as newer players like PixVerse. These companies have expanded their presence in the space following OpenAI's decision to discontinue its Sora video-generation platform to concentrate on core GPT models.

ShengShu announced in April it secured 2 billion yuan ($297 million) in a funding round led by Alibaba, which has been an active investor in Chinese AI startups. Baidu Ventures and Luminous Ventures also participated in the round. Previous investors include Qiming Venture Partners, Baidu Inc. and a Beijing government fund. Tsinghua University professor Zhu Jun founded the company in March 2023.

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