SenseTime Group Inc, the Hong Kong and Shanghai-based artificial intelligence company, has launched its initial public offering (IPO) in Hong Kong despite its blacklisting by US authorities.
The company, which today issued a supplemental prospectus to factor in the risks associated with its blacklisting and new cornerstone investors, intends to sell some 1.5bn B shares to raise up to HK$6bn (US$767mln).
The blacklist, which prevents Americans from investing in the company, reflects a US belief that SenseTime’s facial-recognition technology is being used to assist China’s suppression of predominantly Muslim ethnic Uyghurs.
In its supplemental prospectus, it said that due to the evolving nature of US regulations “we have required to exclude US investors from subscribing for offer shares in the global offering, including those offered in the Hong Kong public offering.”
Nine large investors, including four state-owned entities, have agreed to buy over 65% of the offered shares at a maximum offer price of HK$3.99 per share.
SenseTime plans to finalise the IPO price on 23 December, while shares are expected to begin trading exactly a week later.