Chinese AI developer SenseTime seeks US$358 million from stock placement to fund expansion

Name: SCMP
Telephone: +852-2680-8888

The Shanghai-based tech firm is selling the shares at a 6.3 per cent discount to bolster GenAI development and outpace rivals

Reading Time:2 minutes

Why you can trust SCMP

SenseTime is raising funds to shift its business focus to generative AI. Photo: Aly Song

Zhang Shidongin Shanghai

Published: 1:46pm, 11 Dec 2024

SenseTime, China’s leading artificial intelligence (AI) technology developer, is seeking HK$2.8 billion (US$358.4 million) from a second stock placement in six months to outside investors, following an internal reorganisation to sharpen its industry focus.

The Shanghai-based company is selling 1.865 billion new shares at HK$1.50 each to at least six undisclosed investors, according to a Hong Kong stock exchange filing on Wednesday. The price amounts to a 6.3 per cent discount to its last closing price of HK$1.60 before the announcement. The new shares will account for 5 per cent of SenseTime’s total number of outstanding stock post-issuance.

The placement “represents a suitable financing option” to support the company’s development and growth, taking into account the recent market conditions, SenseTime said in the statement. The company is selling the new shares under a mandate previously approved by its shareholders in June.

The company has hired China International Capital Corp, Goutai Junan International and Huatai International as agents to help find buyers.

02:15

SenseTime CEO expects Hong Kong-listed firm to turn a profit in 2 years with generative AI business

The fundraising will aid SenseTime to shift its business focus to generative AI (GenAI), a strategy the company unveiled last week, as the segment has become the main driver of revenue growth. GenAI can create content in the form of text and videos in response to short prompts. The company is striving to hold onto its shares in the AI market, with competition heating up after major rivals such as Baidu and Tencent Holdings have invested heavily in GenAI.