Kuaishou Technology shares rose 3.4% to HK$30.50 on Tuesday after Bloomberg reported that its Kling AI video-generation unit has chosen banks for an initial public offering. China International Capital Corp., Goldman Sachs and UBS are working on a listing that could raise more than $1 billion.
The offering could come as soon as next year. Kling recently secured up to $3 billion in new funding at a post-money valuation of roughly $18 billion, backed by a consortium of technology and financial investors.
Kuaishou is also set to officially launch Kling 4.0, the unit's latest AI video model, this month. The Hang Seng index gained 0.66% on the same day.