Kwai's Kling AI reportedly preparing for Hong Kong IPO

Kling AI, an artificial intelligence video service provider affiliated with Chinese tech giant Kwai (快手), has reportedly selected investment banks to prepare for a Hong Kong initial public offering (IPO). Sources familiar with the matter indicate that the company aims to raise at least $1 billion in the potential stock offering, targeting a listing as early as next year.

The company is working with China International Capital Corporation (CICC), Goldman Sachs, and UBS to advance the potential share sale. Kling AI, founded in 2024, focuses on AI-generated video services and seeks to capitalize on market opportunities. This move follows a significant funding round in July, where Kling AI raised $2.8 billion at a pre-money valuation of approximately $15 billion, with participation from major investors including Alibaba, Tencent, and Baidu.

Kling AI operates in a competitive landscape, facing rivals such as ByteDance's Seedance and startups Shengshu Technology and PixVerse. Notably, both Shengshu Technology and PixVerse are also rumored to be planning IPOs in Hong Kong, highlighting the region's appeal for AI-focused companies.

Despite a general slowdown in the Hong Kong stock market, AI-related listings have provided a boost, driving the total capital raised from new listings to record highs in the third quarter. This trend may offer a favorable environment for Kling AI's planned debut, even as Kwai's own share performance in Hong Kong has seen a significant decline this year.