VAST weighs Hong Kong IPO at $1 billion AI valuation

VAST, the $1 billion 3D modeling startup backed by Alibaba and Baidu, is exploring a Hong Kong IPO, Bloomberg reported.

The company is working with Bank of America and China International Capital Corp. to prepare for a potential share offer, Bloomberg said, citing people familiar with the matter.

Investors in VAST include Alibaba (09988.HK), Baidu (09888.HK) and Ince Capital. The company recently raised nearly $200 million, becoming another Chinese AI company to reach a $1 billion valuation.

Founded in 2023 by Simon Song, a founding member of large-language-model developer MiniMax (00100.HK), VAST builds software that turns photos into interactive 3D models. The company reached a collaboration with NetEase (09999.HK) on the game "Where Winds Meet," letting players upload photos to instantly generate interactive 3D character avatars.

The Hong Kong listing would give VAST access to a capital market that has drawn a wave of Chinese AI companies seeking public funding. MiniMax is among the AI developers weighing listings, and the sector has become a focus for Hong Kong's exchange as it competes with Shanghai and Shenzhen for technology listings.

VAST has not yet disclosed the offer price, deal size, expected listing date or use of proceeds. The company's $1 billion valuation places it among a growing group of Chinese AI startups that have crossed the threshold on the strength of venture funding rather than public-market revenue.

The IPO would test institutional demand for AI startups in Hong Kong, where investors have rewarded companies with clear revenue paths. Watch for the filing prospectus, which will reveal the offer range and valuation against listed peers.

This article is for informational purposes only and does not constitute investment advice.