Megvii, one of China’s largest facial acknowledgment startups, is gearing up for an initial public offering in Shanghai. The companionship is working with CITIC Securities to prepare for its planned listing, distributed according to an announcement posted by the China Securities Regulatory Commission on Tuesday.
The move came more than a year after Megvii, known for its computer dream platform Face ++, filed to go public in Hong Kong in August 2019. At the time, Reuters reported that the company could collect between $500 million and$ 1 billion. Nonetheless, the firm’s IPO application in Hong Kong has lapsed for undisclosed concludes and its focus is now on Shanghai’s STAR board, person or persons with knowledge of the matter told TechCrunch.
In 2019, China fixed the STAR board to attract high-growth, unprofitable Chinese tech startups after losing them to the U.S. for years. In the meantime, a domestic flotation is increasingly appealing to Chinese conglomerates, especially those that count on government contracts and were located in the U.S.-China tech competition.
Megvii and its adversaries SenseTime, Yitu, and CloudWalk are collectively recognized as the “Four AI Dragons” of China for their sell preeminence and financing from highflying investors. Megvii’s engineering can be found powering smart city infrastructure across China as well as numerous smartphones and portable apps. Alibaba, Ant Group and the Bank of China are among the group of investors who have gushed about $1.4 billion into the ten-year-old company because it inception.
The AI Dragons are less celebrated outside their home sell. Last year, Megvii, Yitu and SenseTime were added to the U.S. Entity List for their suspect capacities in enabling the government’s mass surveillance of the Muslim minority groups in western China. CloudWalk was subsequently added to the blacklist in 2020 and cut off from its U.S. suppliers.
According to the notice announced by China’s certificates power, Megvii plans to issue Chinese depositary receipts( CDRs ), which are similar to American depositary receipts and allow domestic investors to hold overseas shares. That shows the Beijing-based AI unicorn has not ruled out listing outside mainland China.
This week, Hong Kong-listed Lenovo, one of the world’s top PC producers, has also announced plans to sell shares through CDRs on the Shanghai tech board.
Currently seeking guidance in the pre-application stage, Megvii’s planned register still needs approval from Chinese regulators.
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