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SenseTime reopens IPO, but excludes US investors

SenseTime relaunched the offer on Monday with its first trading day set for December 30, according to its revised version deposits on the Hong Kong Stock Exchange.

The fundraising objective remains unchanged. SenseTime still plans to sell 1.5 billion shares in a price range of HK $ 3.85 to HK $ 3.99, seeking to raise up to $ 767 million. The final the price of the offer will be set on Thursday.

The Hong Kong-based company has already secured $ 512 million from key investors, including state-owned Shanghai Xuhui Capital Investment, according to Monday’s filing.

A key investor is usually a large institutional or sovereign investor who commits in advance to purchase a stake in an IPO.

Earlier this month, SenseTime delayed its IPO plans after the US Treasury Department placed the company on a list of “companies in the Chinese military-industrial complex,” in which US President Joe Biden banned Americans from investing.

In a Dec. 10 statement, the U.S. Treasury said SenseTime had been sanctioned because of the role its technology plays in the possibility of human rights abuses against Uyghurs and other Muslim minorities in Xinjiang – accusations SenseTime strongly denied.

Prior to the postponement, the company was scheduled to begin operations in Hong Kong on December 17.

In a statement released on Monday, the AI ​​firm said that “due to the dynamic and evolving nature of relevant US regulations, we have demanded to exclude US investors” from buying shares in the introduction into stock Exchange.

The US government’s decision could also have a “negative” impact on general investor interest in its IPO, which in turn could negatively affect the liquidity and market price of its shares, he said. declared.

SenseTime, which was founded in 2014 in Hong Kong, is best known for its facial recognition software.

The US Treasury Department’s decision earlier this month isn’t the first time SenseTime has run into trouble with Washington. In 2019, the company’s Beijing subsidiary was placed on a U.S. entity list, which prohibited it from purchasing U.S. products or importing U.S. technology without a special license.

–Michelle Toh contributed to the report.

Michelle Toh contributed to the report.


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