Tuesday 17 August 2021 12:00 pm

HSBC to pull together $2bn IPO for China’s biggest AI firm SenseTime

HSBC is working with China’s largest artificial intelligence group SenseTime to form a Hong Kong listing, according to reports.

SoftBank-backed SeneTime’s initial public offering (IPO) could wire in at least $2bn, Bloomberg reported, citing people familiar with the matter.

China International Capital is helping HSBC arrange the float for the firm.

The company has decided not to tap any US banks for the float because Hong Kong has been put on the US Bureau of Industry and Security’s entity list which limits its ability to do business with US companies.

The IPO is set to land on the Hong Kong exchange in the coming weeks, but is still subject to change.

The firm, which uses AI technology for autonomous driving, augmented reality, facial recognition and medical image analysis, saw business demand flourish last year amid the pandemic – which puts it in good stead for a float.

However, tech firms have been spooked by recent volatility surrounding the Hong Kong stock market amid a barrage of scrutiny from the mainland.

The global financial hub has seen just one IPO so far this month, with one large tech firm even pulling its plans for a listing all together.