fbpx

Type to search

SenseTime Launches Hong Kong IPO to Raise up to $767m

SenseTime was among eight Chinese tech companies placed on a US blacklist in 2019 amid trade tensions between Beijing and Washington.


China artificial intelligence (AI) startup SenseTime offices in Hong Kong
Silicon Valley Bank and Wanxiang American Healthcare investments group made investments in Chinese AI firms alongside China's Sensetime. Photo: Reuters

 

Chinese artificial intelligence startup SenseTime Group is looking to raise up to $767 million in its Hong Kong initial public offering (IPO).

The deal launched on Monday for the company to sell 1.5 billion primary shares within a price range of HK$3.85 to HK$3.99 each, a term sheet seen by Reuters said.

Eight cornerstone investors have signed up for the IPO and subscribed for $450 million, or 58.6% of the deal, ahead of its launch, the term sheet showed.

SenseTime declined to comment on the deal’s launch.

SenseTime’s shares are due to price on Friday and start trading on the Hong Kong Stock Exchange on December 17.

 

AI Technologies

The company plans to use the majority of the IPO funds for research and development of its main AI technologies, the term sheet said.

SenseTime provides technology-based applications, including facial recognition, video analysing and autonomous driving.

It had planned to raise up to $2 billion in its Hong Kong IPO, according to a previous report, but scaled back the size of the deal before its launch.

SenseTime was among eight Chinese tech companies placed on a US blacklist in 2019 amid trade tensions between Beijing and Washington.

The action bars the firms from buying components from US companies without US government approval.

 

SenseTime on US Blacklist

The United States alleges the companies on the blacklist played a role in human rights abuses against Muslim minority groups in China.

SenseTime said at the time the ban was imposed it strongly opposed the US trade restrictions and would work with relevant authorities to resolve the situation.

The IPO is going ahead despite the blacklist which has prohibited US investment banks working on the deal.

Unusually for a deal of its size in Hong Kong, there is no major US bank working on the IPO, with HSBC Holdings the only major Western bank with a role as a joint sponsor.

 

  • Reuters with additional editing by Jim Pollard

 

 

 

ALSO READ:

 

SenseTime Delays Rollout of AI Casino: FT

 

China’s SenseTime Prepares for Hong Kong IPO Despite Tech Crackdown, US Blacklist

 

Chinese AI Startup, Blacklisted by US, to File for Hong Kong IPO

 

 

 

 

 

Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

logo

AF China Bond