Stock Markets August 18, 2026 08:00 AM

ShengShu Technology Weighs Hong Kong IPO That Could Top $500 Million

Alibaba-backed AI video startup in talks with Chinese banks as it eyes a potential share sale next year

By Nina Shah
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ShengShu Technology, the developer of the Vidu AI video generator and a portfolio company of Alibaba, is in preliminary discussions to list in Hong Kong in a transaction that could raise more than $500 million. The company has retained China International Capital Corp. and Citic Securities Co. to advise on the proposed offering, which may take place next year. Details, including timing and deal size, remain subject to change.

ShengShu Technology Weighs Hong Kong IPO That Could Top $500 Million
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Key Points

  • ShengShu Technology is exploring a Hong Kong IPO that could raise more than $500 million and has engaged China International Capital Corp. and Citic Securities Co. as advisors.
  • The company operates the Vidu video generator and competes in China’s AI video market with firms including ByteDance, Alibaba and Kuaishou Technology, as well as newer entrants like PixVerse.
  • ShengShu raised 2 billion yuan in April in a funding round led by Alibaba, with participation from Baidu Ventures and Luminous Ventures; earlier investors include Qiming Venture Partners, Baidu Inc. and a Beijing government fund.

ShengShu Technology, an artificial intelligence video-platform developer supported by Alibaba Group Holding Ltd., is exploring a Hong Kong initial public offering that could raise in excess of $500 million. The company operates the Vidu video generator and has engaged China International Capital Corp. and Citic Securities Co. to work on a potential share sale.

People familiar with the situation say the IPO may occur next year, although discussions are ongoing and specific elements of the deal - including the ultimate offering size and the timetable - could be revised as plans evolve. At present, no definitive commitments have been reported and the precise structure of any transaction remains under negotiation.

Vidu targets multiple commercial use cases such as advertising, animation and film production. Within China’s AI video segment, ShengShu competes with established technology firms including ByteDance Ltd., Alibaba and Kuaishou Technology, alongside emerging entrants such as PixVerse. The competitive landscape has been reshaped in part by industry shifts, including OpenAI’s decision to wind down its Sora video-generation product to concentrate resources on core GPT models.

ShengShu announced in April that it completed a 2 billion yuan funding round, equivalent to roughly $297 million, led by Alibaba. The round also included participation from Baidu Ventures and Luminous Ventures. Earlier backers of the company include Qiming Venture Partners, Baidu Inc. and a Beijing government fund. The company was founded in March 2023 by Tsinghua University professor Zhu Jun.

The engagement of major Chinese securities firms to advise on a Hong Kong listing signals that ShengShu and its investors are preparing for a potentially significant capital markets event. That said, market participants and potential investors should note that the transaction is not finalized and that both size and timing could change as discussions continue.


Sectors impacted:

  • Technology - AI and video-generation platforms
  • Media and advertising - creative production workflows
  • Capital markets - Hong Kong equity listings and tech IPO activity

Risks

  • Deal uncertainty - Discussions are ongoing and specific details such as offering size and timing may change, which affects capital markets participants and IPO appetite.
  • Competitive pressure - ShengShu faces competition from large technology companies and new entrants in the AI video market, a factor relevant to media, advertising and technology sectors.
  • Execution risk - As the listing is only being explored at this stage, there is no guarantee a Hong Kong IPO will proceed on the currently discussed terms, posing uncertainty for investors and bankers involved.

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