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22-11-2019, 07:27 PM
Exclusive: Blacklisted Megvii's $500 million HK IPO hit by regulatory setback - sources
Scott Murdoch, Julie Zhu
NOVEMBER 22, 2019 / 5:50 PM
HONG KONG (Reuters) - Chinese AI firm Megvii Technology’s plans for a $500 million listing in Hong Kong have been dealt a setback, with regulators in the city asking the company - which has been blacklisted by the U.S. government - for more information, three sources said.
Beijing-based Megvii did not win approval for its initial public offering (IPO) at a hearing with the Hong Kong Stock Exchange’s Listing Committee on Thursday, the people with knowledge of the matter told Reuters.
Megvii was given additional questions it must respond to by the committee, according to the sources, with one adding the decision followed a lengthy discussion of the application.
The meeting was a regularly scheduled committee hearing, during which the IPOs of several other companies were discussed and approved.
The 27-strong committee contains a mix of bankers, lawyers, accountants and investors, and its approval is essential for any IPO candidate.
The Hong Kong Stock Exchange did not immediately respond to a request for comment. Megvii and the three main banks working with it on the IPO - Citigroup, Goldman Sachs and JPMorgan - declined to comment. The sources spoke on condition of anonymity because the information is not public.
Concerns about Megvii included questions about its suitability to seek an IPO, said the sources, after the Trump administration last month barred the company from buying U.S. parts and components without U.S. government approval.
Megvii was put on the blacklist along with seven other Chinese companies for their alleged involvement in human rights violations related to Beijing’s repression of Muslim minority populations in the Xinjiang Uighur Autonomous Region.
Megvii said at the time it strongly objected to being blacklisted, and there were “no grounds” for the designation.
The company, backed by e-commerce giant Alibaba, and its banking advisers are in the process of answering the listing committee’s questions, said two of the people.
More details in https://www.reuters.com/article/us-megvi...SKBN1XW13Y
Scott Murdoch, Julie Zhu
NOVEMBER 22, 2019 / 5:50 PM
HONG KONG (Reuters) - Chinese AI firm Megvii Technology’s plans for a $500 million listing in Hong Kong have been dealt a setback, with regulators in the city asking the company - which has been blacklisted by the U.S. government - for more information, three sources said.
Beijing-based Megvii did not win approval for its initial public offering (IPO) at a hearing with the Hong Kong Stock Exchange’s Listing Committee on Thursday, the people with knowledge of the matter told Reuters.
Megvii was given additional questions it must respond to by the committee, according to the sources, with one adding the decision followed a lengthy discussion of the application.
The meeting was a regularly scheduled committee hearing, during which the IPOs of several other companies were discussed and approved.
The 27-strong committee contains a mix of bankers, lawyers, accountants and investors, and its approval is essential for any IPO candidate.
The Hong Kong Stock Exchange did not immediately respond to a request for comment. Megvii and the three main banks working with it on the IPO - Citigroup, Goldman Sachs and JPMorgan - declined to comment. The sources spoke on condition of anonymity because the information is not public.
Concerns about Megvii included questions about its suitability to seek an IPO, said the sources, after the Trump administration last month barred the company from buying U.S. parts and components without U.S. government approval.
Megvii was put on the blacklist along with seven other Chinese companies for their alleged involvement in human rights violations related to Beijing’s repression of Muslim minority populations in the Xinjiang Uighur Autonomous Region.
Megvii said at the time it strongly objected to being blacklisted, and there were “no grounds” for the designation.
The company, backed by e-commerce giant Alibaba, and its banking advisers are in the process of answering the listing committee’s questions, said two of the people.
More details in https://www.reuters.com/article/us-megvi...SKBN1XW13Y
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