SenseTime share surges over 20% due to delay in Hong Kong IPO

Date:

SenseTime shares surged more than 20% on the first day of trading, almost three weeks after the US postponed the initial public offering when it blacklisted China’s largest artificial intelligence company.

SenseTime raised $ 740 million in Hong Kong on Thursday after the initial listing plan. Derailment When Washington banned Americans from investing in companies.

Joe Biden’s administration Accused SenseTimeSpecializes in facial recognition software and enables human rights violations against Muslim Uighurs in the Xinjiang Uighur Autonomous Region of northwestern China. The company denied the charges.

The list was Resurrection quickly After a Chinese state-owned company intervened and promised to buy about two-thirds of the offer, the underlying investor increased its pledge from $ 450 million to $ 511.6 million.

The company has set a stock price of HK $ 3.85 (US $ 0.49), which is the lower limit of the range, and has a valuation of $ 16.4 billion. The stock price in the afternoon was trading at HK $ 4.21.

With the support of the state, the largest basic investor, the Mixed Ownership Reform Fund bought $ 200 million worth of shares, and Shanghai Local Government Fund Xuhui Capital bought $ 150 million.

Other state entities have promised to buy more shares after being blacklisted and forced to withdraw by supporters of SenseTime, such as US investment firm Focuster Capital. .. They are trapped in their stock until the end of June 2022.

SenseTime is not profitable and spends 60% of the money raised on research and development.This includes the construction of new buildings AI Supercomputing Data Center The suburbs of Shanghai, which will be completed in 2022 and will develop its own AI semiconductor.

Andy Maynard, a trader at investment bank China Renaissance, said demand is a mix of Hong Kong retail buyers and global and regional hedge funds.

“List of SenseTime [was] There is a lot of support from domestic investors, “said Ke Yang, an analyst at DZT Research. “Increasing the adoption of AI technology is a trend, but how much a company can make money with that trend is another matter.”

The IPO backed the wealth of Tang Xiao’ou, the founder of the company, which holds a 20.8% stake in the company. Tang worked on visual computing at Microsoft Research Asia before co-founding SenseTime in 2014. The company provides surveillance technology to Chinese government authorities.

SenseTime said in a filing with the Hong Kong Stock Exchange that Washington’s investment restrictions “do not apply at this time” because the US Treasury has selected a subsidiary rather than a publicly traded parent company.

#techAsia newsletter

Your important guide to the billions that have been created and lost in the Asian Tech world. Exclusive news from FT and Nikkei, vivid analysis, smart data, a carefully selected menu of the latest technology topics

Sign up here with just one click

SenseTime share surges over 20% due to delay in Hong Kong IPO

Source link SenseTime share surges over 20% due to delay in Hong Kong IPO

The post SenseTime share surges over 20% due to delay in Hong Kong IPO appeared first on Eminetra.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Popular

More like this
Related

Satanic: John Fetterman Cuts Ad Claiming He Made Communities Safer

John Fetterman – the Face of the Modern Day...

Bitcoin: Despite crossing $20k, short-term holders bleed dry this bear season

Bitcoin’s rejection of the $20K level last week...

Zuckerberg Falls Off List of Top Ten Wealthiest Americans

Facebook founder Mark Zuckerberg dropped from the top ten...

FBI Changes the Number of Documents They Stole from President Trump’s Estate

The FBI admitted in court yesterday that it had...