In a bold move that underscores Hong Kong's growing technological ambition, artificial intelligence company Zhipu is preparing to launch a landmark initial public offering that could reshape the city's investment landscape.

The company, known internationally as Z.ai and officially registered as Knowledge Atlas Technology, has strategically set its offer price at HK$116.20 for over 37 million shares, with a significant 10 percent allocation reserved for retail investors. This carefully planned debut, scheduled for January 8, represents a critical moment for the AI startup's financial aspirations.

With a projected post-listing market valuation of HK$51.16 billion (approximately US$6.6 billion), Zhipu anticipates netting HK$4.17 billion from its IPO, assuming no over-allotment option is exercised. The offering signals strong confidence in the company's technological potential and Hong Kong's emerging role in the global AI ecosystem.

Industry expert Alvin Cheung Chi-wai from Prudential Brokerage offered nuanced insights, suggesting the retail bookbuilding could potentially attract over 400,000 investors, driven by robust investment sentiment toward technology shares. However, Cheung cautioned against unrealistic expectations, noting that Zhipu's first-day performance might differ from recent tech listings like Moore Threads and MetaX.

The IPO represents more than a financial transaction; it's a testament to Hong Kong's commitment to positioning itself as a premier technology investment destination. By supporting innovative AI companies like Zhipu, the city demonstrates its ambition to compete on the global technological frontier.