By Yongchang Chin
Shares of SenseTime Group Inc. rose in their Hong Kong trading debut, after the Chinese artificial-intelligence company raised 5.55 billion Hong Kong dollars ($711.8 million) in an initial public offering despite its blacklisting by the U.S.
SenseTime’s stock opened 1.6% higher but gained as much as 23% compared with its IPO price of HK$3.85. It has since pared the gains and was last up 15% at HK$4.42.
The U.S. earlier this month added the Chinese company to an investment blacklist, alleging that its facial-recognition technology was used in the oppression of mainly Muslim ethnic minorities in China’s Xinjiang region.
The sanction had caused SenseTime to delay the IPO from its original Dec. 16 date.
Chinese state-owned investors are among the top cornerstone investors in the SenseTime IPO. Bocom International had also subscribed to its shares. SenseTime said it would use proceeds to expand its AI business.
Write to Yongchang Chin at [email protected]