On December 10, local time in the United States, the US Treasury Department announced that sensetime Technology, a Chinese intelligent technology manufacturer, would be included in the "list of military-related enterprises". This is also the second time that the United States has suppressed SenseTime after it included SenseTime in the "Entity List" in 2019, with the intention of curbing the development of China's technology industry.
It is worth noting that SenseTime has officially launched a IPO listing in Hong Kong from December 7 to December 10, planning to issue 1.5 billion shares, of which 10% are public offerings and 90% are international offerings, with an offer price ranging from HK$3.85 to HK$3.99, with an estimated fundraising of HK$5.775 billion to HK$5.985 billion, and is expected to be listed in Hong Kong on December 17.
According to the prospectus, 90% of the 1.5 billion Class B shares are international placement shares and the remaining 10% are Hong Kong public offering shares, equivalent to 150 million Class B shares. The indicative offer price ranges from HK$3.85 to HK$3.99 per share. Based on the median offer price of HK$3.92 per offering share, senseTime's net proceeds from the global offering amounted to approximately HK$5,655 million.
According to public information, the part of SenseTime's international placement is equivalent to 1.35 billion class B shares that have been oversubscribed in only half a day, of which 9 cornerstone investors have subscribed for 450 million US dollars, including the mixed ownership reform fund initiated by China Chengtong, Guosheng Overseas Hong Kong, Shanghai Artificial Intelligence Industry Equity Investment Fund, SAIC Hong Kong, GF Fund, Pleiad Fund, WT, Focustar and Hell Ved, with a cornerstone subscription ratio of 60%.
Among them, nearly half of the cornerstone investors are from Shanghai, and most of them have state-owned asset backgrounds. Chen Zijia, an analyst in the artificial intelligence industry at a Hong Kong securities company, said in an interview with The China Times: "There are a number of central enterprises, local state-owned assets to escort, and as a leader in the AI industry, the issue price is not high, so the Hong Kong stock IPO on the 17th next week is expected to be safe."
However, the reason why the issue price is so low may be that in the years since its inception, SenseTime has suffered continuous losses, and from 2018 to the first half of 2021 alone, SenseTime has accumulated losses of more than 24 billion yuan. ”
however At the time when SenseTime went public in Hong Kong, the US Treasury Department included SenseTime in the "list of military-related enterprises", which will directly restrict U.S. investors from investing in SenseTime, and cannot trade SenseTime's shares in the market. This will have a considerable negative impact on SenseTime's listing plan.
In senseTime's shareholder list, there are investors from the United States. According to SenseTime's IPO prospectus, Silver Lake Capital and Qualcomm in the United States participated in the investment in SenseTime.
As of the early morning of December 11, Beijing time, neither Silver Lake Capital nor Qualcomm commented on the relevant reports.
At 10:27 a.m. on December 11, SenseTime issued a public statement in response: "We strongly oppose this decision and related allegations.We believe that this decision is unfounded in relation to the allegations and reflects a fundamental misunderstanding of our company.Technological development should not be influenced by geopolitics. SenseTime is a leading AI software company dedicated to developing sustainable, responsible and ethical AI technologies and applications. We strictly comply with the laws and regulations of relevant countries and regions in all aspects. ”
Founded in 2014, SenseTime is an AI software company focused on computer vision and deep learning technologies, according to public information.
The Sullivan report cited in SenseTime's prospectus shows thatIn terms of 2020 revenue, SenseTime is Asia's largest AI software company.