Chinese AI developer SenseTime seeks US$358 million from stock placement to fund expansion


SenseTime, China’s leading artificial intelligence (AI) technology developer, is seeking HK$2.8 billion (US$358.4 million) from a second stock placement in six months to outside investors, following an internal reorganisation to sharpen its industry focus.

The Shanghai-based company is selling 1.865 billion new shares at HK$1.50 each to at least six undisclosed investors, according to a Hong Kong stock exchange filing on Wednesday. The price amounts to a 6.3 per cent discount to its last closing price of HK$1.60 before the announcement. The new shares will account for 5 per cent of SenseTime’s total number of outstanding stock post-issuance.

The placement “represents a suitable financing option” to support the company’s development and growth, taking into account the recent market conditions, SenseTime said. The company is selling the new shares under a mandate previously approved by its shareholders in June.

The company has hired China International Capital Corp, Goutai Junan International and Huatai International to help find buyers.

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SenseTime CEO expects Hong Kong-listed firm to turn a profit in 2 years with generative AI business

SenseTime CEO expects Hong Kong-listed firm to turn a profit in 2 years with generative AI business

The fundraising will help SenseTime to shift its business focus to generative AI (GenAI), which can create content in the form of text and videos in response to short prompts, as the segment has become the main driver of revenue growth. The additional funds can better protect SenseTime against stiffer competition from major rivals such as Baidu and Tencent Holdings that have also invested heavily in GenAI.



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