Deals
China’s Megvii Considers Delaying IPO on Blacklist Concerns
- Chinese AI giant Megvii is advised by sponsors to delay IPO
- Megvii, SenseTime are working to get off the U.S. blacklist
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China’s Megvii Technology Ltd. is considering whether to delay its initial public offering given uncertainty over whether it can secure its existing $4 billion valuation while on an American blacklist, according to people familiar with the matter.
The artificial intelligence startup is discussing with advisors whether to proceed with the planned Hong Kong share sale this month or hold off as they try to get off the U.S. “Entity List,” which cuts off access to key American technology, the people said, requesting not to be named because the matter is private. Investors are hesitant to buy shares and Megvii may have trouble securing even a $3.5 billion valuation, one of the people said.