Chinese media LatePost reported that AI unicorn Megvii is “suspending its listing in Hong Kong”, and the company is to further discuss the possibility of listing in Hong Kong or Shanghai’s sci-tech innovation board, known as the Star market. Megvii denied the statement. Megvii’s listing application, which started last August, has lapsed since February 2020, and passed the extended 3 months period to submit updated financial data under the Hong Kong bourse’s rules.
According to South China Morning Post, Megvii failed to submit updated audited financial data on time due to disruptions caused by the COVID-19 outbreak. However, a source said that Megvii has not ruled out the possibility to re-apply for a Hong Kong listing. While LatePost cited sources claiming that “Megvii has given up on the Hong Kong listing plan at least for the time being,” the individual said Megvii is merely weighing different options while waiting for a good time for the capital market.
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According to sources, Megvii is still in a very “rudimentary” stage in the decision making process and has no timetable yet after its first attempt of going public was terminated. Known as China’s response to NASDAQ, Shanghai’s Star market has potentially more favorable policies and more receptive investors for Megvii.
Megvii hasn’t stopped its global business efforts despite being put on the Entity List by US Government over alleged human rights violations. As the COVID-19 pandemic spreads around the world, Megvii has received a number of contactless temperature measuring equipment orders from Japan, Russia and Southeast Asian countries, among others.
The biggest investor and corporate shareholder of Megvii, Chinese internet giant Alibaba and its subsidiaries, hold a total of 29.41% of Megvii’s shares. LatePost cited a source that Alibaba intends for Megvii to go public in Hong Kong. A NASDAQ listed company, Alibaba had its successful secondary listing debut in Hong Kong in November 2019.