Kling, Kuaishou Technology's AI video-generation unit, has reportedly selected China International Capital Corp., Goldman Sachs and UBS Group to work on a potential Hong Kong IPO. The offering could raise at least $1 billion and happen as soon as next year.
The potential IPO reflects a broader trend of Chinese tech companies spinning off valuable assets to tap strong investor demand for artificial intelligence. In July, Kling reportedly raised $2.8 billion from investors including Alibaba, Tencent and Baidu. The fundraising valued the unit at about $15 billion before the investment.
News of the potential IPO lifted Kuaishou's shares in Hong Kong trading.