Chinese AI-Driven Firm Megvii Files for Hong Kong IPO
Chinese artificial intelligence firm Megvii filed for a public listing in Hong Kong. Aside from that, Alibaba backed a conduction of IPO targeting proceeds of at least $500 million.
Chief Executive Officer Yin Qi and two friends from Tsinghua University founded Megvii in 2011. And the firm might become the first Chinese AI firm to be public in Hong Kong.
Aside from that, the filing came in the middle of government plans for China to be AI’s international leader. AI is now becoming increasingly central in many sectors.
Megvii, in May, was able to raise $750 million from investors such as Bank of China Grou[ Investment Ltd and Australia’s Macquarie Group Ltd. at a valuation a little above $4 billion.
Furthermore, the Chinese company also got backed by Ant Financial. And it gives facial recognition and other AI technology to government and firms like Alibaba, Ant Financial, Lenovo Group, and Huawei.
It booked a loss of $472 million or 3.35 billion yuan on revenue of 1.43 billion the previous year. And it widens the loss from 759 million yuan a year earlier.
Moreover, it will use IPO proceeds mainly for research and development, marketing and sales, global expansion, and strategic investments opportunities.
Then, JPMorgan, Goldman Sachs, and Citigroup are joint sponsors of the said IPO.
Meanwhile, the Hang Seng Index of Hong Kong dived 3.1% amid tensions flared in the city.
On Sunday night, the Hong Kong police fired a shot in the sky amid violent protests. Then later, the police stated that it was their best choice to break up hundreds of protesters. And six officers had their guns drawn.
State-run Xinhua News Agency stated on Sunday, “It’s not only in China central government’s authority but also its responsibility to intervene when riots take place in Hong Kong.”
Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. If you are interested in following the latest news on the topic, please follow Finance Brokerage on Google News.