Biren Technology get ready for IPO, valued at $2.19B in November

Biren Technology IPO: The South China Morning Post reported that Biren Technology, which specializes in AI GPU design, has hired banks to help them with the launch of an initial public offering (IPO).

As of November, Biren Technology was valued at $2.19 billion and is planning to go public for more than a year. The company first hired Guotai Junan Securities to help with the IPO planning stage.

The IPO preparation stage is a mandatory process for all the companies in China before launching an IPO. The ‘tutoring’ process will take almost three to twelve months period to complete.

The China Securities Regulatory Commission (CSRC) and Biren haven’t declared the market in which they will launch the IPO and fundraising goal through public subscription.

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This decision comes after Biren’s rival Enflame launched its IPO, the motive of both companies is to raise funds through public markets and utilize the funds to grow their operations. The companies are trying to take advantage of the growing interest of China in chips.

Biren Technology plans to take advantage of the gap left by Nvidia and AMD, whose most powerful chips are restricted from selling to Chinese companies because of U.S. export rules.

Furthermore, the company is on a “blacklist” by the U.S. Commerce Department which restricted it from producing the BR100/BR200 GPUs i.e. these GPUs cannot be produced by TSMC unless it receives the export license from the U.S. government.

Thus, the company has to make simplified BR106, BR106C (cards), and BR106M (module) products which are not made by TSMC but produced by SMIC. However, Biren currently doesn’t shares the performance numbers for these parts.

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