Chinese firm SenseTime postpones $767 mn HK IPO after US ban

Last week, SenseTime Group had launched its debut sale.

As per the company’s original plan, it was supposed to start trading in Hong Kong on December 17.

CNN quoted a stock exchange filing as stating that as of last week, SenseTime was planning to price shares between 3.85 and 3.99 Hong Kong dollars, or roughly 50 cents apiece, which would have put its valuation at approximately $17 billion at the top end of the range.

On the occasion of International Human Rights Day, the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued a statement identifying Chinese firm, SenseTime Group Limited (SenseTime), as a Non-SDN Chinese Military-Industrial Complex Company (NS-CMIC) pursuant to E.O. 13959, as amended by E.O. 14032.

The department said, "SenseTime owns or controls, directly or indirectly, a person who operates or has operated in the surveillance technology sector of the PRC’s economy.

"SenseTime 100 percent owns Shenzhen Sensetime Technology Co. Ltd., which has developed facial recognition programs that can determine a target’s ethnicity, with a particular focus on identifying ethnic Uyghurs. When applying for patent applications, Shenzhen Sensetime Technology Co. Ltd. has highlighted its ability to identify Uyghurs wearing beards, sunglasses, and masks."

Responding to the US' decision, SenseTime on Saturday said, "The accusations are unfounded and reflect a fundamental misunderstanding of our company. We regret to have been caught in the middle of geopolitical disputes.."

The company said in a stock exchange filing Monday that it would postpone the listing "to safeguard the interests of the potential investors of the company" and allow them to "consider the potential impact of" the US move on any investments, CNN reported.

It further said the investors in Hong Kong, who have already applied to be part of the IPO will receive funds.