The new stock pricing | SenseTime-W has received 5.18 times oversubscription, priced at HK$3.85 per share.

Futu News on December 29th announced that this Wednesday...$SENSETIME-W (00020.HK)$Issuing an announcement, the company will issue 1.5 billion shares at a price of 3.85 Hong Kong dollars per share, with a board lot of 1,000 shares, expected to be listed on December 30.

During the public offering stage, SenseTime-W was oversubscribed by approximately 5.18 times, with the final number of shares offered in the public offering being 0.15 billion shares, accounting for 10% of the total number of shares offered (before any exercise of the over-allotment option). A total of 36,009 valid applications were received, with a 60% allotment rate for one board lot and a subscription ratio of 2 lots for every 3 lots applied.

In addition, the international offering was oversubscribed, with the final number of shares offered being 1.35 billion shares, equivalent to 90% of the total shares offered (before any exercise of the over-allotment option). Futu News has compiled the relevant data as shown in the table below:

The company plans to use the net proceeds from the global offering of approximately 5.552 billion Hong Kong dollars for the following purposes: about 60% will be used to enhance the company's research and development capabilities; approximately 15% will be allocated to invest in emerging business opportunities and increase the adoption and penetration of the company's products and services in various vertical industries and enterprise levels domestically and internationally; around 15% will be used to seek strategic investment and acquisition opportunities to implement long-term development strategies for the company's product and service development and industry penetration, as well as to cultivate a vibrant artificial intelligence ecosystem for the company to further expand its influence in the industry; approximately 10% will be used for working capital and general corporate purposes.

SenseTime Technology is an artificial intelligence software company focused on computer vision software.According to a report by Frost & Sullivan, based on the 2020 revenue calculation, SenseTime Technology is the largest artificial intelligence software company in Asia and became China's largest computer vision software provider in 2020 with an 11% revenue market share.

As of June 30, 2021, SenseTime Technology's software platform has served a total of over 2,400 customers, including over 250 Fortune Global 500 companies and listed companies, in 119 cities, and over 30 automobile companies. It has empowered over 0.45 billion mobile phones and over 200 mobile applications.

Since its establishment, the company has won more than 70 championships in various global competitions, published over 600 top academic papers, and owns over 8,000 artificial intelligence patents and patent applications. SenseTime Technology has proactively created the industry's unprecedented general artificial intelligence infrastructure SenseCore AI, achieving large-scale production of multifunctional ultra-high-precision AI models; the company's developed artificial intelligence software platform can quickly deploy AI models to massive scenarios and continuously expand its own scale.

According to the Sullivan report, with outstanding technology and model production scale effect, SenseTime has achieved a leading market position in the fields of smart business, smart city, smart life, and smart automobiles, serving commercial space management, residence property management, city management, manufacturing, infrastructure, transportation, mobile devices and applications, medical, and automobiles.

In terms of financial condition, from 2018 to 2020, the company's revenue was 1.853 billion yuan, 3.027 billion yuan, and 3.446 billion yuan respectively, with a compound growth rate of 36.37%. As of June 30, 2021, the revenue for the six months ending 2021 was 1.652 billion yuan, a year-on-year increase of 91.8%.

In 2018, 2019, 2020, and the six months ending June 30, 2021, the company's gross profits were 1.047 billion yuan, 1.719 billion yuan, 2.432 billion yuan, and 1.205 billion yuan respectively, with gross margins of 56.5%, 56.8%, 70.6%, and 73.0%.

In terms of industry, the scale of China's computer vision software market reached 16.7 billion yuan in 2020, and the compound annual growth rate from 2020 to 2025 is expected to reach 43.5%, reaching 101.7 billion yuan by 2025.

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