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DeepSeek Hires CITIC Securities for IPO, Targets 500B Yuan Valuation

DeepSeek, the artificial intelligence star, is making a bold move toward the public market. According to recent reports from Reuters and other outlets, the company has brought on CITIC Securities to handle its IPO preparations for China's Sci-Tech Innovation Board. The plan? File the application this year and aim for a listing in 2026.

But that's not all. DeepSeek is also in the middle of a new funding round, with a jaw-dropping target valuation of 500 billion yuan. That's a massive leap from just a few months ago, when the company completed its first major external funding round in June, raising $7.4 billion (about 49.8 billion yuan) and reaching a post-money valuation of over $5 billion (roughly 336.4 billion yuan).

So, what's driving this rapid ascent? For starters, DeepSeek's business is booming. In the first seven months of 2026, the company pulled in around 475 million yuan in revenue—nearly ten times its entire 2025 revenue. That kind of growth is hard to ignore, and it's clear the company is capitalizing on the AI boom.

The funds from the IPO will be channeled into four key areas: expanding computing power infrastructure, investing in cutting-edge large models and chip self-research, and beefing up incentives for core R&D talent. It's a strategic move to solidify DeepSeek's position in the fiercely competitive AI landscape.

But with great hype comes great chaos. The Financial Times reports that the frenzy around DeepSeek's shares has spawned a secondary market for off-market transfers. Some early investors, eager to cash in, have set up special purpose vehicles (SPVs) to bring in outside money, layering on fees that can exceed 15% and profit-sharing as high as 40%—far above industry norms. It's a wild west out there, and it's raising red flags.

DeepSeek itself isn't involved in these shadowy deals. In fact, founder Liang Wenfeng is taking a hands-on approach to prevent governance headaches down the road. He's personally reviewing the final list of investors, digging into the real identities of limited partners behind the investments, and making sure the company's equity doesn't fall into unknown hands. It's a smart move, especially with a listing on the horizon.

The investor lineup for the June round reads like a who's who of tech and finance. Liang Wenfeng himself put in about 20 billion yuan, making him the largest single investor. Tencent chipped in 10 billion, and CATL group companies added 5 billion. JD.com, NetEase, IDG Capital, and the National Artificial Intelligence Industry Investment Fund also joined the party. Interestingly, this round comes with a five-year lock-up period, and external investors don't get voting rights. Yet demand was so strong that shares were oversubscribed.

As DeepSeek hurtles toward its IPO, the stakes are high. The company is riding a wave of enthusiasm, but it's also navigating tricky waters. With Liang Wenfeng's careful oversight, it's clear the founder is determined to keep the ship steady. Whether the IPO will live up to the hype remains to be seen, but one thing's for sure: all eyes are on DeepSeek.

Key Points

  • DeepSeek has hired CITIC Securities for its Sci-Tech Innovation Board IPO, targeting a 2026 listing.
  • The company is raising funds at a 500 billion yuan valuation, up from 336 billion yuan in June.
  • Revenue for the first seven months of 2026 hit 475 million yuan, nearly 10x the 2025 total.
  • IPO proceeds will fund computing infrastructure, large models, chip research, and talent incentives.
  • Off-market SPV transfers are causing governance concerns, prompting founder Liang Wenfeng to personally vet investors.