Based on a term sheet obtained by Reuters, China's largest artificial intelligence startup SenseTime Group is seeking to raise up to $767 million in its Hong Kong initial public offering (IPO).
SenseTime began selling 1.5 billion primary shares on Monday at a price range of HK$3.85 to HK$3.99 per share, according to the term sheet.
The company's shares are set to price on Friday and start trading on the Hong Kong Stock Exchange on Dec. 17.
Eight major investors have subscribed for $450 million, or 58.6% of the sale, ahead of the offering's launch, according to the term sheet.
SenseTime did not respond to a request for comment on the deal's launch.
SenseTime intends to use the majority of the IPO proceeds for research and development of its primary artificial intelligence technology.
The Chinese tech firm develops technology-based solutions such as facial recognition, video analysis, and apps for self-driving vehicles.
Reuters earlier reported that the company intended to raise up to $2 billion in its Hong Kong initial public offering, but trimmed the amount of the sale before to its launch.
SenseTime was one of eight Chinese technology companies blacklisted by the United States in 2019 in the wake of ongoing trade tensions between China and the U.S.
The measure prohibits the enterprises from purchasing components from US companies without prior consent from the US government.
The U.S. contends that the entities on the blacklist were complicit in alleged human rights violations against China's Muslim minority communities.
SenseTime stated at the time of the ban's imposition that it was firmly opposed to the United States' trade restrictions and would work with appropriate authorities to rectify the matter.
The IPO is proceeding despite the blacklisting of American investment banks.
Unusually for a deal of this magnitude in Hong Kong, no major U.S. bank is involved in the IPO, with HSBC Holdings PLC serving as the sole large Western bank as a joint sponsor.
The move comes in the face of rising volatility in the listing market and a dearth of large initial public offerings in the Asian financial hub.
China Tourism Group Duty Free Corp., the world's largest travel retailer, suspended a $5 billion Hong Kong offering last week, blaming weak capital markets and the pandemic.
Bloomberg had reported that SenseTime was trying to raise at least $1 billion through the offering in November. The Hong Kong Economic Journal previously reported on the offering, citing filings with the stock exchange.
