SENSETIME Group Inc., China’s biggest artificial intelligence firm, is seeking to raise as much as US$768 million from a Hong Kong initial public offering (IPO) in a test of investor appetite in volatile stock markets.

The company is offering 1.5 billion shares at between HK$3.85 (US$0.49) and HK$3.99 apiece, raising nearly HK$6 billion at the top end of the range, according to the terms of the deal. Books opened yesterday, pricing is expected Friday and listing is slated for Dec. 17.

The move comes at a time of increased volatility for listings and amid a drought for big IPOs in the Asian financial hub. China Tourism Group Duty Free Corp., the world’s largest travel retailer, decided last week to suspend a US$5 billion listing in Hong Kong, citing sluggish capital markets and the pandemic.

Bloomberg reported in November that SenseTime was seeking to raise at least US$1 billion with the offering. The Hong Kong Economic Journal reported details of the offering earlier, citing listing documents.

Eight cornerstone investors committed to subscribe for US$450 million in SenseTime shares, the terms show, representing about 59 percent of the offering. They include Mixed-Ownership Reform Fund (US$200 million) and Pleiad Fund (US$50 million).

The company plans to use the majority of the IPO funds for research and development of its main artificial intelligence technologies. Hong Kong-based SenseTime is backed by major investors such as SoftBank Vision Fund and Alibaba Group Holdings. The company provides technology-based applications, including facial recognition, video analyzing and autonomous driving.

(SD-Agencies)