[HK IPO] Subscription status and IPO analysis of Biren Technology

Company Name: Biren Technology Co., Ltd.

Sponsors: CICC, Ping An, BOCI

Greenshoe: Yes

Cornerstone Investors: 63.99%

Subscription Period: Dec 22 - Dec 29 (No conflict with the previous six cash IPOs)

Listing Date: Jan 2

Main Business: GPU chips and GPGPU intelligent solutions

1. Sponsors, Greenshoe, Cornerstone

Recent IPO performance has been poor, especially for CICC-sponsored ones like Mingji Hospital, Xidi Zhijia, and Naxinwei, which all broke issue prices consecutively. Ping An co-sponsored Xidi with CICC and also got into trouble. BOCI hasn’t sponsored any IPOs since the new rules, with the last one being Huarun Beverage last year.

CICC’s greenshoe—those who know, know.

The sponsors and greenshoe are a bit weak, but the cornerstone is strong, accounting for 64%, with many well-known domestic and international institutions, including 3W Fund, Qiming Venture Partners, UBS, Fullgoal Fund, Southern Fund, Shanghai Jinglin, etc., totaling 23 institutions, only 6 fewer than Zijin Gold International.

IPO Rating: ★★★★

2. Volume and Margin Situation

Observant friends may have noticed that cornerstone investors account for 64% this time.

Huh? Didn’t the new rules say anchor investors should be no less than 40%, plus Mechanism B’s minimum public offering of 10%, so the maximum cornerstone ratio should be 50%? How did this 64% come about?

Turns out, the 40% anchor ratio applies to ordinary companies, but this company is listing under Chapter 18C, which requires over 50% independent pricing investors (professional institutions meeting independence criteria or other investors with assets over RMB 1 billion). This 50% can be cornerstone or anchor investors.

This 18C listing has a 20% public offering, plus 64% cornerstone, leaving only 16% for anchors—less than the public offering. These highly capable investment institutions couldn’t even secure a 1:1 cornerstone-to-anchor ratio during negotiations, showing the company’s strong bargaining power and how hot its shares are.

As of 3:30 PM today, the margin financing reached RMB 6.5 billion, 27x oversubscribed, significantly better than other IPOs on their first day.

The public offering totals 250,000 lots, a large volume, likely a broad-based market trend.

IPO Rating: ★★★★★

3. Valuation and Fundamental Analysis

Skipping the GPU jargon in the fundamentals, in short, it’s a top-tier domestic high-end GPU player. Next year’s BR20X is expected to approach H100 performance, while the current BR166 already surpasses A100. The company has twice won the SAIL Award at WAIC and is one of China’s earliest GPGPU companies to achieve commercial deployment of thousand-card clusters.

Technically, it’s solid—still streets behind NVIDIA but leading domestically.

One issue: H1 revenue was only RMB 59 million, up YoY, but if projected rolling revenue is RMB 360 million, the PS ratio is 128x. While lower than Moore Thread’s 334.8x, combined with AH discount and Cambricon’s 100x PS, the price isn’t that attractive, hardly worth big players fighting for cornerstone stakes.

But earlier, during private placement reviews (no prospectus due to confidential submission), reliable sources suggested expected annual revenue of ~RMB 1 billion. If true, the PS would be 46x, versus Moore Thread’s forward PS of ~240x, leaving 5x upside. Even with a 50% AH discount, that’s still ~2x.

IPO Rating: ★★★★★

Summary:

Tomorrow we’re launching the "New Year Double Festival Kickoff" event. Warming up today—no hiding the ratings, here they are:

Biren Tech: 5 stars. Go for it.

But if there’s funding conflict, see the ball for allocation.

IPO Rating: ★★★★★

PS: Today’s QingSong Health surge was expected—I had insider info. But Nuobi Kan was tightly sealed, no leaks at all—feels like its script with Huayan Bio got swapped.

$BIREN TECH(06082.HK) $B&K CORP-B(02396.HK) $NUOBIKAN(02635.HK)