Shares of Zhipu AI, dubbed China’s “first large-model IPO”, fell below their initial public offering price in intraday trading on Thursday, underscoring cautious investor sentiment toward the country’s fast-growing artificial intelligence sector.

The stock slipped as much as 0.1% to HK$116.1, below its IPO price of HK$116.20, giving the company a market capitalisation of about HK$51.2 billion ($6.55 billion).

Zhipu AI sold 37.42 million H shares in its global offering, of which 20% were allocated to the Hong Kong public tranche and 80% to international investors, according to the company’s filing.

The offering raised net proceeds of about HK$4.17 billion, the company said.

Zhipu AI is one of China’s leading developers of large-scale artificial intelligence models and is often referred to in local media as the country’s first listed “large-model” company.