Chinese artificial intelligence (AI) firm Megvii’s plans for a US$500 million Hong Kong initial public offering (IPO) are back on track as the firm’s application has been cleared by the stock exchange, according to Reuters.
A time table for the deal, however, is yet to be put in place.?
The report cited sources as saying that Megvii will wait until after the Chinese New Year holidays, which start on Jan. 25.
The company, which is known for its facial recognition platform Face++, is aiming to be the first Chinese AI firm to go public.
Megvii, which was blacklisted by the US last year, was asked to provide more information in November when the firm faced the Hong Kong Stock Exchange listing committee to seek the go-ahead for the transaction.
In October, the the Trump administration placed Megvii on a banned trade list with seven other Chinese firms for their alleged involvement in human rights violations related to Beijing’s treatment of Muslim minority populations in the Xinjiang Uighur Autonomous Region.
The company said at the time it “strongly objected” to the blacklisting.
Megvii is due to file updated listing information shortly with the Hong Kong exchange, according to Reuters sources.
Citigroup, Goldman Sachs and JPMorgan are said to be working on the updated listing plan.
Megvii, founded in 2011, raised US$750 million last May, which valued it at slightly over US$4 billion.
Investors include Australia’s Macquarie Group and the Abu Dhabi Investment Authority.
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