Chinese artificial intelligence startup Megvii Technology plans to refile its initial public offering application after updating its financial data as its first application to the Hong Kong Stock Exchange lapsed yesterday.
Megvii Technology, known for its facial recognition platform Face++, said yesterday it is still pushing the IPO plan. The current IPO application lapsed six months after it was filed, partly due to the impact of the coronavirus epidemic which has disrupted business activity in China.
The company had hoped to kick off a public float after Lunar New Year to raise between US$500 million (HK$3.9 billion) and US$1 billion.
The Trump administration in last October 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 Uygur Autonomous Region.
Megvii was asked to provide more information in November when the company faced the Hong Kong Stock Exchange listing committee to seek the go-ahead for the transaction.
The IPO plan was back on track last month after its updated IPO application was cleared by the stock exchange. Citigroup, Goldman Sachs, and JPMorgan are joint sponsors of the deal.
Meanwhile, Naixue's Tea, one of the biggest bubble tea chains in China, is considering an initial public offering in the U.S. that could raise as much as US$400 million, according to several inside sources.
The company, also known as Nayuki, is working with advisers on the potential first-time share sale that could take place as soon as this year, they said. The firm is currently looking to raise about US$50 million to US$100 million in a pre-IPO funding round, sources said.
Naixue, started by Shenzhen Pindao Restaurant Management in 2010, has more than 230 stores across China, according to its website. The chain sells fresh-fruit tea - some with cheese foam on the top - as well as cold brew tea and baked goods.
