SenseTime seeks up to $ 17 billion in valuation at Hong Kong IPO

SenseTime, a Chinese artificial intelligence company specializing in facial recognition software, is seeking an initial public offering of up to $ 17 billion. This will be the largest list in Hong Kong in a few months.

According to the Financial Times termsheet, the company plans to raise between $ 750 million and $ 767 million. The 1.5 billion shares offered represent approximately 4.5% of that share, and its target range gives a valuation between $ 16.5 and $ 17 billion.

I had SenseTime I wanted before Raise up to $ 2 billion from a listing in Hong Kong. The reduced IPO occurred as China’s tech sector faced increased regulatory oversight from Beijing, Stock rout Companies focusing on e-commerce, games and food delivery

To crack down on regulations Equity Financing In Hong Kong, global IPO funding jumped to three-quarters, but at $ 26 billion, down one-fifth from last year’s total, and transactions in New York alone increased to nearly $ 300 billion. Did.

HSBC is the only western investment bank involved in the SenseTime IPO, according to US investment banking executives.

Other international lenders are SenseTime Blacklisted by the United States It is said to have supported human rights violations in the Xinjiang Uygur Autonomous Region in northwestern China. SenseTime has denied the allegations.

“As an AI unicorn, its profitability is [very limited]”Edmond Hui, Chief Executive Officer of Bright Smart Securities, a Hong Kong brokerage firm at SenseTime, said.

He predicts that the shrinking IPO will be primarily due to concerns about market volatility and that the company will receive the level of investor oversubscription typical of Hong Kong’s past technology listings. He added that it makes it difficult.

SenseTime opens a trading book on Monday, prices are scheduled for Friday, and trading is scheduled to begin on December 17th.

The deal also included eight basic investors who promised to buy $ 450 million worth of stock. In Hong Kong, cornerstone investors are commonly used to increase the trust of individual investors and ensure a smooth listing.

SenseTime’s key investment is $ 200 million held by the Mixed Ownership Reform Fund, which was established by other investors in late 2020 under the auspices of the state-owned China Chengtong Holdings Group and China’s State-owned Assets Supervisory Commission. Was included in the stock.

Those familiar with the deal said they had received more orders than the stocks already on sale, primarily after considering the cornerstone buyers from long-term investors.

Top SenseTime backers include SoftBank, Alibaba, Tiger Global and Silver Lake.

The SenseTime stake follows the sluggish debut of Cloud Village, the music streaming business of tech group NetEase, with IPOs down $ 422 million and stakes down 2.5% last week.

The SenseTime IPO will also be Hong Kong’s largest offer since the state-owned Dongguan Rural Commercial Bank raised $ 1.2 billion in September.

If a banker runs the “Green Shoe” option, the SenseTime list could raise as much as $ 882 million. This allows you to increase the size of your offering to meet strong demand.

But still, the long-awaited list is not the biggest technology offer of the year in Hong Kong, JD LogisticsAlibaba’s rival’s supply chain business raised $ 3.6 billion in May.

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SenseTime seeks up to $ 17 billion in valuation at Hong Kong IPO

Source link SenseTime seeks up to $ 17 billion in valuation at Hong Kong IPO

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