Chinese AI start-up Megvii said to plan IPO in either Hong Kong or New York to raise up to US$800 million
- The Beijing-based artificial intelligence start-up developed the widely-used Face++
Megvii, the developer of facial recognition software Face++ used widely across China, is mulling an initial public offering that could raise up to US$800 million, people familiar with the matter said.
The Beijing-based artificial intelligence start-up is still weighing options to list in either New York or Hong Kong, with the latter more likely at this stage, said the people who did not want to be identified as the information is private.
The company, backed by Alibaba Group Holding and Foxconn Technology among other investors, is looking to raise between US$500 million and US$800 million in the offering. The preliminary offering date is set for July, according to one person familiar with the matter.
A company spokesman declined to comment on its IPO plans.
The IPO could serve as a test for how well China's AI boom will be received by the world's capital markets, with several Chinese facial recognition and surveillance start-ups eyeing potential listings in the coming year. Dubbed the fourth industrial revolution, China wants to push AI into all walks of life, from catching criminals to commercial applications such as self-driving cars and robots that can read medical scans and detect cancer.
China is home to the biggest number of artificial intelligence start-ups valued at US$1 billion or above, according to CB Insights, a research firm that tracks venture capital activity. Six of the 11 so-called unicorns in the annual compilation of top AI start-ups are from China, with SenseTime taking top spot with a valuation of US$4.5 billion.
Founded by three Tsinghua University graduates in 2011, Megvii provides computer vision technologies to corporate clients such as Lenovo, Foxconn, Ant Financial, Xiaomi and Vivo.
Megvii’s technology is also used by the Ministry of Public Security, and has helped in over 5,000 arrests since 2016. The company has also expanded into internet of things applications, smart robotics and logistics.
Alibaba is the parent company of the South China Morning Post.
