Summary
DeepSeek’s preparations for a STAR Market IPO mean more than completing China’s AI technology: they mark the start of capital-market validation. According to Reuters on the 9th local time, Chinese Hangzhou-based AI startup DeepSeek selected CITIC Securities as sponsor for a planned listing on the Shanghai Stock Exchange’s STAR Market. Multiple sources said DeepSeek aims to begin the IPO process within this year.
A STAR Market IPO would allow DeepSeek to list shares on the Shanghai Stock Exchange’s technology-focused market and receive a public-market valuation. Based on the reporting reviewed by Maeil Business Newspaper’s Securities Desk and Reuters, investors must distinguish between the progress represented by sponsor selection and the outcome of a successful listing.
How Far Has DeepSeek’s STAR Market IPO Progressed?
The confirmed step is that DeepSeek has appointed CITIC Securities as sponsor. Selecting a sponsor signals that IPO preparations have begun moving, but the specific listing date, offering size and target market capitalization have not yet been determined. Therefore, there is no basis for treating the current valuation as a finalized offering valuation.
Reuters reported in July that DeepSeek was raising new funds at a current valuation of 500 billion yuan, approximately 100 trillion won. Maeil Business Newspaper’s Securities Desk reported that DeepSeek raised about $7.4 billion, approximately 9.9 trillion won, in June, when its post-money valuation was assessed at more than $50 billion, or approximately 66.9 trillion won. Because these figures reflect different dates and fundraising stages, they should not be combined as a confirmed price on the same basis.
The Validation Sequence Matters More Than the 100 Trillion Won Valuation
Within the scope of reporting by Maeil Business Newspaper’s Securities Desk and Reuters, the investment thesis in this development follows a sequence from fundraising valuation to IPO review and then public-market valuation. The first number the market will focus on is 500 billion yuan, but the information that will determine the actual judgment is the offering size and target market capitalization. Only once these two items are disclosed can investors compare whether the previous valuation holds through the listing process.
Chinese AI companies are also moving toward listings. Maeil Business Newspaper’s Securities Desk reported that Zhipu AI and MiniMax listed in Hong Kong this year. Reuters reported early this month that Moonshot AI had confidentially filed for a Hong Kong IPO, while Maeil Business Newspaper’s Securities Desk said Moonshot AI was valued at $50 billion, approximately 67 trillion won, in its recent fundraising and that Zhipu’s current market capitalization was about $54 billion, approximately 72 trillion won.
Implications for Tencent and CATL
- Tencent: Maeil Business Newspaper’s Securities Desk reported that Tencent invested 10 billion yuan, approximately 2 trillion won, in DeepSeek in June and became a major external shareholder. Based on the provided information, the interpretation is that if DeepSeek’s IPO process continues, Tencent’s investment stake will gain a public-market valuation benchmark. However, the financial impact on Tencent cannot be calculated because the ownership percentage and offering terms have not been provided.
- CATL: Maeil Business Newspaper’s Securities Desk reported that CATL invested 5 billion yuan, approximately 1 trillion won, in DeepSeek in June and became a major external shareholder. DeepSeek’s listing preparations could prompt the market to revalue CATL’s external investment assets, but there is not yet enough information to calculate a specific change in value.
- China’s AI industry sector: DeepSeek’s STAR Market preparations add to Zhipu AI and MiniMax’s Hong Kong listings and Moonshot AI’s confidential IPO filing. Within the reporting scope of Reuters and Maeil Business Newspaper’s Securities Desk, this confirms that Chinese AI companies’ fundraising channels are not limited to private-market investment.
Conditions Separating Bullish and Bearish Outcomes
The bullish scenario is that DeepSeek starts the IPO process within this year as targeted and that the target market capitalization disclosed later maintains the currently discussed valuation of 500 billion yuan. Based on an analysis of the provided information, this would give Tencent and CATL’s investment decisions a public-market benchmark and sustain the listing momentum among Chinese AI companies.
On the other side are valuation pressure and the talent race. Reuters reported that DeepSeek recently lost some employees to competitors ByteDance and Xiaomi. If the listing process is delayed or the future target market capitalization falls below the current valuation, the burden of having the business and organization tested in public markets would come into focus before the headline figure of 100 trillion won.
Numerical comparisons with U.S. AI companies also require caution. Maeil Business Newspaper’s Securities Desk reported investor estimates that Anthropic could receive a valuation of up to $2 trillion, approximately 2,678 trillion won, in an IPO, while Reuters reported that OpenAI could target a valuation of up to $1 trillion, approximately 1,339 trillion won, in a planned listing. These are IPO-related estimates and targets, not realized listing valuations, so they cannot be definitively compared on the same basis as DeepSeek’s current fundraising valuation.
Investor Action Points
- Process: Check whether DeepSeek actually begins the IPO process within this year.
- Pricing: If a target market capitalization appears in listing-related materials, compare it separately with the current 500 billion yuan valuation and its underlying basis.
- Offering: The offering size must be disclosed before investors can assess how much funding the IPO would provide DeepSeek.
- Shareholder impact: Do not estimate the financial effects on Tencent or CATL from their investment amounts alone before ownership-related information is released.
Frequently Asked Questions
Has DeepSeek’s IPO success been confirmed?
No. The confirmed facts are that DeepSeek selected CITIC Securities as sponsor and is preparing a STAR Market listing. The listing date, offering size, target market capitalization and IPO success have not been determined.
What will DeepSeek use the IPO proceeds for?
The actual use of the IPO proceeds was not identified in the provided information. Investors should check whether a use-of-proceeds plan is specified in future listing-related materials.
Can DeepSeek currently be bought as a listed stock?
The provided information describes DeepSeek as a Chinese AI startup in Hangzhou preparing for a STAR Market IPO. The listed companies directly linked to DeepSeek in this article are its major external shareholders, Tencent and CATL, but the effect of their DeepSeek investments cannot be calculated until the offering terms and ownership information are disclosed.
This article is automatically summarized and analyzed based on the original news report. View the original article (Maeil Business Newspaper Securities)
