Chinese chip maker Black Sesame slumps 27% in IPO as market turmoil spooks investors
- Stock suffered from a shaky market across the region, following concerns about US recession and frothy valuations among global tech companies
The stock sank 27 per cent to HK$20.45 at the close of trading on Thursday, versus its offering price of HK$28, valuing the entire company at HK$11.6 billion (US$1.5 billion). The broader market was subdued, with the Hang Seng Index adding 0.1 per cent and the Tech Index losing 0.5 per cent.
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“This listing makes us the first autonomous driving AI chip stock on the Hong Kong stock exchange, and also the first in Asia and even Europe,” said Shan Jizhang, founder and CEO at the Black Sesame. “Standing at a new starting point, we will actively embrace the vast market opportunities” in the industry, he added.
The debut was preceded by a market sell-off this week that wiped out more than US$6 trillion from global equities. Concerns about a US recession, overpriced artificial intelligence-driven tech stocks and the Bank of Japan’s rate increases combined to spook investors.
