Megvii denies giving up on HK, but eyeing Star

Chinese artificial intelligence company Megvii Technology denied mainland media reports that it is giving up on its plan for a Hong Kong initial public offering, but said it is discussing the possibility of listing on Shanghai's Nasdaq-style Star Market.

The US-backlisted company hasn't refiled its IPO application to Hong Kong stock exchange after the previous one lapsed in February, according to the bourse's website. The company had hoped to raise between US$500 million (HK$3.9 billion) and US$1 billion in its IPO, Reuters reported last year.

Megvii was put on the US blacklist along with seven other Chinese companies for their alleged involvement in human rights violations related to Beijing's repression of Muslim minority populations in the Xinjiang Uighur Autonomous Region.

Megvii, known for its facial recognition platform Face++, has long wanted to be the first Chinese AI firm to go public. It said in yesterday's statement that Shanghai's Star Market is providing development opportunities to mainland tech companies.

Meanwhile, more mainland companies are planning summer debuts in Hong Kong.

Retail investors placed HK$49 billion orders for NetEase's mega secondary listing, equivalent to an oversubscription of over 74 times, within two days, local brokers' data showed. But analysts said investors shouldn't have high hopes for its first-day performance, as its stock price change will be constrained by its performance in the United States.

Two Chinese biotech companies, Hygeia Healthcare and Immunotech Biopharm, are seeking listing hearings today to raise US$300 million and US$100 million respectively, according to Reuters IFR.

The two companies will kick off their investor roadshows next week if they pass, the report said.

Also, China Bohai Bank, a mid-sized mainland lender partly owned by Standard Chartered (2888), is planning to seek listing hearings next week for a Hong Kong IPO that could raise at least US$2 billion, local media reported. The Tianjin-based lender is working with ABC International, CCB International, CLSA and Haitong International Securities Group on the share sale.

In other news, Equipment International (1645), a mainland manufacturer of automated machines for making disposable hygiene products, fell 13.04 percent to HK$0.12 in its market debut yesterday.