AI start-up Beijing Fourth Paradigm among 3 Chinese firms launching Hong Kong IPOs

The IPOs by Fourth Paradigm, cloud hospital platform Neusoft Xikang and mobile games operator ZX are aiming to raise as much as US$280 million in Hong Kong

Software made by Fourth Paradigm, which was added to the US ‘Entity List’ this year, are used in a range of sectors including finance, retail and manufacturing

Reading Time:1 minute

IPO activity on the Hong Kong stock exchange is picking up. Photo: Elson LI

Published: 9:46am, 18 Sep 2023

Three Chinese firms, led by artificial intelligence (AI) software company Beijing Fourth Paradigm, are aiming to raise up to US$280 million in Hong Kong initial public offerings launched on Monday.

Beijing Fourth Paradigm, an AI start-up, is aiming to raise up to US$144 million by selling 18.4 million shares in a price range of HK$55.60 to HK$61.16 each, according to its regulatory filings.

Three cornerstone investors, headed by New China Capital Management, have subscribed for about US$96.8 million worth of stock, which equates to 70.6 per cent of the IPO, the filings showed.

Fourth Paradigm was added to the US “Entity List” this year, which means US suppliers are barred from shipping US technology to it unless they can procure a difficult-to-obtain licence from the Commerce Department.

Founded in September 2014, Fourth Paradigm’s products have been used in finance, retail, manufacturing, healthcare, energy and power, telecommunications, healthcare and other sectors, according to its website.