Chinese AI startup Megvii delays Hong Kong IPO to 2020

This post was originally published on this site

https://i-invdn-com.akamaized.net/news/LYNXNPEAA900K_M.jpg
© Reuters. © Reuters.

Investing.com – Chinese facial recognition technology startup Megvii Technology has decided to delay its IPO on the Hong Kong Stock Exchange until next year.

The tech startup is facing request from the bourse for more information, after it was placed on a trade blacklist known as the entity list by the US Commerce Department.

“It is realistic for the company to push back the IPO plan to next year,” the source told IFR. Megvii reportedly had decided to postpone its $500 million to $1 billion IPO to next year.

In October, the US authorities put Megvii and 27 other Chinese governmental and commercial organizations on the trade blacklist for engaging in or enabling activities involving human rights violations and abuses.

With a valuation of $4 billion, Megvii filed for a listing in Hong Kong in August that was backed by Citigroup (NYSE:), Goldman Sachs (NYSE:) and JPMorgan (NYSE:). It was expected to become the first of China’s AI startups to go public.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.