AI firm Sensetime to withdraw $767 mn IPO

After being placed on US investment blacklist, China-based artificial intelligence start-up SenseTime Group will withdraw its $767 million Hong Kong initial public offering (IPO)
and rewrite its prospectus, Reuters reported.
Dollar spending on technology
The Joe Biden Administration placed SenseTime on U.S. investment blacklist on Friday.

SenseTime will take a d
ecision to cancel the IPO in its current form. The AI company will revise the risk factors in its prospectus in order to restart the IPO process. 

The Treasury Department accused SenseTime of having developed facial recognition programs that can determine a target’s ethnicity, with a particular focus on identifying ethnic Uyghurs.SenseTime said in a statement on Saturday that it strongly opposed the designation and accusations that have been made in connection with it, calling the accusations unfounded.

SenseTime’s addition to the U.S. blacklist would prohibit U.S.-based investors from buying its shares.

SenseTime had planned to sell 1.5 billion shares within a price range of HK$3.85 to HK$3.99 each in the IPO. It was due to set the final price and allocate shares to institutional investors on Friday, according to the firm’s filings.


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