What’s new: Beijing-based AI startup and service provider Fourth Paradigm kicked off a long-awaited initial public offering in Hong Kong, aiming to raise a net HK$885 million ($113 million).
Fourth Paradigm, also known as 4Paradigm, will offer 18.4 million shares in a price range of HK$55.60 to HK$61.16 each, according to its regulatory filings. The offering gives the company a valuation between HK$25.8 billion and HK$28.4 billion ($3.3 billion to $3.6 billion).
Three cornerstone investors — New China Capital Management, Beijing Zhongguancun Science and Technology Investment Partnership and Montage Technology Holdings Co. Ltd. — subscribed for $96.8 million of the shares, or 70.6% of the IPO, the filings showed.
Shares of Fourth Paradigm are to start trading Sept. 28.
The background: Established in 2014, Fourth Paradigm provides AI-powered solutions for corporate clients in sectors including finance, retail, health care, manufacturing and energy, according to its website.
The company completed several rounds of fundraising totaling nearly $1 billion. It was valued at $2.95 billion in its most recent funding round in June 2021.
In March, Fourth Paradigm was added to the U.S. “Entity List,” barring it from procuring some critical components such as advanced chips made by American enterprises. Fourth Paradigm said the restriction will not have a significant impact on its business and operations.
The company posted 3 billion yuan ($412 million) of revenue in 2022 with a pretax loss of 1.65 billion yuan.
Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bob.simison@caixin.com)
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