Chinese AI startup SenseTime has postponed its $767 million initial public offering (IPO) after it was listed as a US investment embargo, but it remains committed to completing its stock offering, will publish a supplementary prospectus and renew the offering schedule.
SenseTime was planning to sell 1.5 billion shares in a price range of HK$3.85-3.99, which would raise $767 million, which the company would have settled on after lowering its IPO target from $2 billion earlier in the year.
But instead of setting an IPO price on Friday, as it had planned, the Chinese company found itself in emergency talks with the Hong Kong stock exchange and its lawyer about the future of the deal amid reports of it being placed on a ban.
SenseTime did not give details of the timetable for the new subscription in its report to the Hong Kong Stock Exchange, but confirmed that it will return all share application funds in full, without interest, to applicants who reserved shares in the subscription process.
The US Treasury has added SenseTime to its list of “Chinese military-industrial companies,” accusing it of developing facial recognition software that can identify the ethnicity of a target face, and technologies focused on identifying residents of the Uighurs, a persecuted minority in China. Read more [The US adds 14 new Chinese companies to the ban list] and [US Regulators Freeze Chinese Companies’ IPOs]