BUSINESS SenseTime relaunches Hong Kong IPO after US investment ban


SenseTime relaunches Hong Kong IPO after US investment ban


20:25, December 22, 2021

Chinese artificial intelligence startup SenseTime Group relaunched its Hong Kong initial public offering (IPO) on Monday, a week after it postponed the listing in the wake of the company's inclusion on a U.S. investment blacklist.

The logo of artificial intelligence startup SenseTime. (Photo: CFP)

SenseTime retained its target of selling 1.5 billion shares for between HK$3.85 ($0.49) and HK$3.99 ($0.51) each, according to regulatory filings, with the final price to be set on Thursday.

However, it will now rely on cornerstone investors to buy around $511.6 million of shares, up from $450 million of shares previously, according to the filings.

The company first kicked off the IPO two weeks ago. But it postponed the listing last week to safeguard the interests of the potential investors, after the U.S. Treasury added it to a list of Chinese military-industrial complex companies on December 10.

SenseTime strongly opposed the U.S. designation and accusations in a statement released on its website on December 11, saying that the accusations reflect "a fundamental misperception" of the company and they "regret to have been caught in the middle of geopolitical tension."

It will exclude U.S. investors from buying its shares, "due to the dynamic and evolving nature of the relevant U.S. regulations," the company said.

The company also noted its inclusion on the U.S. blacklist does not impose any restriction on its business operations, but that could limit its ability to raise funds and affect the liquidity and market price of its shares.

The company's shares are expected to start trading on the Hong Kong Stock Exchange on December 30.

The China International Capital Corporation, Haitong International and HSBC are the joint sponsors of the deal.

Terms of Service & Privacy Policy

We have updated our privacy policy to comply with the latest laws and regulations. The updated policy explains the mechanism of how we collect and treat your personal data. You can learn more about the rights you have by reading our terms of service. Please read them carefully. By clicking AGREE, you indicate that you have read and agreed to our privacy policies

Agree and continue