Hong Kong IPO boost: Chinese firms Mobvoi, HighTide plan to raise up to US$500 million amid sluggish year

Listings could boost the city’s fundraising, which is off to a sluggish start in 2023, down 52 per cent year on year in the first quarter

AI and electronics maker Mobvoi aims to raise up to US$300 million, while pharmaceutical company HighTide targets up to US$200 million

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Flags are raised outside the Hong Kong Exchange Square building in Hong Kong, home of the city’s stock exchange. Photo: Jelly Tse

Published: 4:00pm, 31 May 2023

Biopharmaceutical manufacturer HighTide Therapeutics and artificial-intelligence and electronics company Mobvoi are planning Hong Kong share listings that could boost the city’s initial public offering (IPO) fundraising total for the year by up to US$500 million.

Both companies announced IPO plans and sponsors in exchange filings on Tuesday.

The announcements come amid a lacklustre year for Hong Kong IPOs amid economic headwinds. Funds raised from new share listings in Hong Kong in the first quarter plummeted 52 per cent year on year to US$837 million, according to Refinitiv, pushing the city to seventh place on a global ranking of IPO venues.

Mobvoi, a Beijing-based company that develops artificial-intelligence (AI) technology and smart devices, aims to raise US$200 million to US$300 million in its offering, according to Bloomberg, citing sources familiar with the deal. CICC and CMB International Capital are the deal’s joint sponsors.

Mobvoi sells devices such as smartwatches and recently debuted an artificial-intelligence large language model. Photo: Mobvoi website

The firm last month debuted its own AI large language model, and its software finds use in sectors including finance, telecommunications and senior care. Mobvoi drew the likes of Volkswagen AG as an investor and partner via a 2017 funding round, and also counts Sequoia and Zhenfund as early backers. Google, Goertek, Sequoia Capital and SIG Asia are among its shareholders.