Megvii Technology is a Beijing-based artificial intelligence startup. It is known in particular or its facial recognition brand Face++. Now, Megvii plans to file public listing in Hong Kong.
Yet, the startup did not disclose share pricing or when the IPO will take place. Meanwhile, according to Reuters, the company plans to raise between $500 million and $1 billion and list in the fourth quarter of this year.
Megvii’s current investor include Alibaba, Ant Financial and the Bank of China. The startup’s last funding was a Series D of $750 million announced in May. The funding has brought its valuation to more than $4 billion.
Also read: Hong Kong Airport Shutdown Affects Businesses
The startup founded by three Tsinghua University graduates in 2011. Megvii is now among China’s leading AI startups, with its peers (and rivals) including SenseTime and Yitu.
The startup’s clients include Alibaba, Ant Financial, Lenovo, China Mobile, and Chinese government entities.
Megviis Risks
The startup’s decision to list in Hong Kong comes against the backdrop of an economic recession and political unrest. The situation has contributed to slumping in the value of Hang Seng index benchmark. That same situation has caused Alibaba to postpone its listing on the same region.
Meanwhile, from a macroeconomic perspective, Megvii’s investment risks include the restrictions and tariffs placed on Chinese exports to the U.S. That risk appears as part of the ongoing trade war.
Also read: China New Ways to Boost Its Economy
It also cited reports that Megvii is among the Chinese tech companies the U.S. government may add to trade blacklists.
The startup has confirmed they have not received formal notification about the blacklist. Yet, it has not denied that media report, alone, has already damaged its reputation and diverted its management’s attention.
Besides, they also mention that they do not have control over it, thus, the option left for them is to remain optimistic.
