In today’s briefing:
- Biren Technology IPO: China’s “NVIDIA Moment” and The Rise of a Homegrown AI Chip Champion
- Merger Arb Mondays (22 Dec) – Dongfeng, Jinke, ANE, ENN, Makino, Pacific Ind, Raksul, Toyota Ind
- A/H Premium Tracker (Wk to 19 Dec 2025): Hs Underperform Again, Beautiful Skew Behaving Badly
- Pre-IPO InSilico Medicine – Thoughts on Valuation, Peer Comparison and Forecast
- Insilico Medicine IPO: Shortening Drug Discovery Period Through AI-Driven Platform Holds Promise
- B&K (华芢生物科技) IPO: Trading Updates
- HK Connect SOUTHBOUND Flows (Wk To 19 Dec 2025) – Lower Activity, Net Buying, but High-Div SOEs Sold
Biren Technology IPO: China’s “NVIDIA Moment” and The Rise of a Homegrown AI Chip Champion
- Biren Technology, a Shanghai-based fabless chip design company that develops intelligent processors for GPU and DSA computation architectures, filed to go public in Hong Kong.
- Biren Technology was founded in 2019 by CEO & Chairman Mr. Wen Zhang, who previously worked at AI software company SenseTime Group Inc.
- This is a red-hot upcoming IPO to watch, in my view. Moore Threads and MetaX Integrated Circuits have recently raised $1.1B and ~$600M in their public share offerings in Shanghai.
Merger Arb Mondays (22 Dec) – Dongfeng, Jinke, ANE, ENN, Makino, Pacific Ind, Raksul, Toyota Ind
- I summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
- Highest spreads: Smart Share Global (EM US), Dongfeng Motor (489 HK), ENN Energy (2688 HK), Jinke Smart Services (9666 HK), Humm Group (HUM AU), Qube Holdings (QUB AU).
- Lowest spreads: Bright Smart Securities (1428 HK), Mandom Corp (4917 JP), Toyota Industries (6201 JP), Pacific Industrial (7250 JP), Ainsworth Game Technology (AGI AU), Hainan Meilan International Airport (357 HK).
A/H Premium Tracker (Wk to 19 Dec 2025): Hs Underperform Again, Beautiful Skew Behaving Badly
- Hs within the liquid AH pair universe UNDER-performed As on average by 0.87%. Beautiful Skew behaved BADLY. Spreads were a bit all over the place.
- Quiddity H/A Portfolio performance slightly positive (+11-13bp). Low H/A “beta” helps. Stay the Beautiful Skew course.
- The data tables below update daily in the Tools section of Smartkarma. The Southbound Flow Monitor and AH Pairs Monitor are both there – free for all SK readers.
Pre-IPO InSilico Medicine – Thoughts on Valuation, Peer Comparison and Forecast
- The IPO pricing reflects the liquidity value brought by IPO and recognition of cornerstone investors, but InSilico is facing huge uncertainties.Its value will take several years to be verified.
- Our revenue forecast is US$55 million/US$70-90 million/US$100-150 million in 2025/2026/2027, respectively. Insilico may suffer losses in the next three years, but in 2027, the Company may turn loss into profits.
- The essential difference between QuantumPharm and InSilico lies in business models. We’re more optimistic about InSilico in long term, whose valuation may surpass QuantumPharm if InSilico can develop blockbuster drugs.
Insilico Medicine IPO: Shortening Drug Discovery Period Through AI-Driven Platform Holds Promise
- InSilico Medicine launched HK IPO consisting of ~95M H shares. The indicative offer price is HK$24.05 per share. The company aims to raise ~$292M. Subscriptions will close on December 23.
- InSilico Medicine is a clinical-stage generative AI-driven drug discovery company, with Pharma.AI being its proprietary generative AI platform. The company has generated 20+ clinical or IND-enabling stage assets using Pharma.AI.
- The company intends to use the proceeds to fund clinical trials of pipeline drug candidates, develop new generative AI models, and development and expand the company’s automated lab.
B&K (华芢生物科技) IPO: Trading Updates
- B&K raised HKD 674m (USD 87m) from its global offering and will list on the Hong Kong Stock Exchange on Monday December 22, 2025.
- In our previous note, we looked at the company’s core products, management track records.
- In this note, we provide an update for the IPO before trading debut.
HK Connect SOUTHBOUND Flows (Wk To 19 Dec 2025) – Lower Activity, Net Buying, but High-Div SOEs Sold
- HK$82bn+/Day of gross SOUTHBOUND activity last week vs HK$90+bn the week before. Gross flows are winding down. Net rebounded to +HK$16bn.
- Relatively high div low vol SOEs were net sold. Again. This is getting heavy. It matters because some have less international buying support (they are Trump military names).
- The data tables below update daily in the Tools section of Smartkarma. The Southbound Flow Monitor and AH Pairs Monitor are both there – free – for all SK readers.
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