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
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.
The stock is being sold in a price range of HK$4.76 to HK$5.91 each.
ZX, the mobile games operator, is selling 18.97 million shares in a range between HK$11 to HK$14 each to raise between US$27 million and US$34 million, according to its prospectus.