Zhipu AI Raises $4 Billion in Hong Kong Following Lockup Expiration
Zhipu AI, a Chinese artificial intelligence company known for its GLM series of large language models, has successfully returned to the Hong Kong equity market following the expiration of its six-month post-IPO lockup on July 8, 2026. The company raised approximately HK$31.41 billion, equivalent to around $4 billion, through a share placement just days after insiders were allowed to sell their shares.
This recent fundraising effort significantly outpaced Zhipu AI's initial public offering (IPO) in January 2026, where it raised about $558 million by pricing shares at HK$116.2 each. The stock experienced a remarkable surge of over 2,000% after its debut, briefly elevating the company's market capitalization above HK$1 trillion. In addition to the $4 billion raised, Zhipu AI has returned to the market in September 2026 to secure an additional $5 billion through new shares and zero-coupon convertible bonds maturing in 2027, bringing its total fundraising to nearly $9.5 billion within nine months.
The proceeds from these fundraising activities are earmarked for various purposes, including research and development, commercialization of AI models, mergers and acquisitions, and general working capital. The zero-coupon structure of the recent bonds allows Zhipu AI to avoid interest payments until maturity, providing a cost-effective financing option if the bonds convert to equity at favorable prices.
Zhipu AI's successful fundraising reflects a growing trend among Chinese technology companies to list in Hong Kong, particularly under the exchange's specialist-technology regime, which is designed to attract early-stage tech firms. The Chinese government's supportive policies for the domestic AI sector further bolster this trend, as artificial intelligence has been designated a strategic priority, fostering a regulatory environment conducive to growth and investment.
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Source: KLEA News