© Reuters.
Three mainland China-based companies, spearheaded by artificial intelligence (AI) software firm Beijing Fourth Paradigm, launched their initial public offerings (IPOs) on the Hong Kong Stock Exchange on Monday. The companies aim to raise up to $280 million collectively.
Beijing Fourth Paradigm, an AI startup founded in September 2014, is looking to garner up to $144 million through the sale of 18.4 million shares at a price range of HK$55.60 to HK$61.16 each, as detailed in its regulatory filings. The company’s products have been deployed across various sectors such as finance, retail, manufacturing, healthcare, energy and power, telecommunications and others.
In this IPO, three cornerstone investors led by New China Capital Management subscribed for approximately $96.8 million worth of stock, which accounts for 70.6 percent of the offering.
Alongside Fourth Paradigm, Neusoft Xikang, a cloud hospital platform, is aiming to raise between $81 million and $101 million by selling 133.8 million shares. The shares are being sold in a price range of HK$4.76 to HK$5.91 each.
Additionally, mobile games operator ZX Inc is offering 18.97 million shares priced between HK$11 to HK$14 each with the intention to raise between $27 million and $34 million.
Earlier this year, Fourth Paradigm was included in the U.S. “Entity List”, which restricts U.S. suppliers from shipping technology to the company unless they can secure a difficult-to-obtain license from the Commerce Department.
The recent IPOs come as part of a larger trend of Chinese companies seeking public listings in Hong Kong amid regulatory scrutiny and market volatility.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Read the full article here
