Shangtang technology restarted its IPO and raised about HK $6 billion

In the morning of December 20, Shangtang technology announced on the Hong Kong stock exchange that it would restart the public offering today, and the offering scale and pricing range would remain the same as before. Shangtang issued a total of 1.5 billion shares, with a share price ranging from HK $3.85 to HK $3.99 per share, raising about HK $6 billion. The subscription of the shares was closed at 12:00 noon on December 23 and is expected to be listed on December 30.

On December 10, the US Treasury Department listed Shangtang company in the "list of non SDN Chinese military industrial complex enterprises". The list was formulated by the Biden administration in June 2021. After being listed, U.S. investors will not be able to participate in the trading of their open market stocks and derivatives.

In response, Shangtang technology responded that it strongly opposed the decision, considered that the decision was groundless with the relevant allegations, and said that the development of science and technology should not be affected by geopolitics. Shangtang will fully protect the rights and interests of the company and relevant stakeholders.

Shangtang technology originally planned to announce the final offering price, placement results and other information on December 16, and officially listed in Hong Kong stocks on December 17.

On December 13, Shangtang technology announced that its global offering and listing would be delayed, and the company is still committed to completing the global offering and listing as soon as possible.

It is worth noting that the announcement released by the company today shows that the list of cornerstone investors contained in the Prospectus has changed. A number of new cornerstone investment agreements and a number of amendment agreements to the original cornerstone investment agreement have been entered into. The cornerstone investors have agreed that subject to certain conditions, Subscribe for the relevant number of offer shares with a total amount of approximately US $512 million (approximately HK $3.99 billion) at the offer price.

In addition, according to the Amendment Agreement of the Hong Kong underwriting agreement, Guotai Junan Securities (Hong Kong) Co., Ltd. and bocom International Securities Co., Ltd. no longer serve as joint Bookrunner, joint lead manager and underwriter. In addition, the composition of joint global coordinator, joint Bookrunner, joint lead manager and underwriter remains unchanged.

Shangtang technology was established in 2014 and submitted its listing application to the Hong Kong Stock Exchange on August 27 this year. According to the report released by Frost & Sullivan, a third-party consulting firm, Shangtang is the AI company with the highest revenue in Asia in 2020, accounting for 11% of the market share in China's computer vision market. From 2018 to 2020, the revenue of Shangtang was RMB 1.853 billion, RMB 3.027 billion and RMB 3.446 billion respectively; From 2018 to the first half of 2021, the net losses of Shangtang were RMB 3.433 billion, RMB 4.967 billion, RMB 12.158 billion and RMB 3.713 billion respectively.