Beijing Fourth Paradigm, a Chinese artificial intelligence firm, plans to price its shares at the low end of the spectrum, at HK$55.6 each, to generate HK$1.023 billion ($131 million), according to a source with direct knowledge of the situation.
Since the information was not yet made public, the source spoke on the condition of anonymity.
Fourth Paradigm, which declined to comment, was added to the U.S. “Entity List” this year, making it illegal for American suppliers to provide U.S. technology unless they can secure a difficult-to-obtain license from the Commerce Department.
According to its regulatory filings, Fourth Paradigm is offering 18.4 million shares in the IPO and has indicated to investors that the price range for each share was between HK$55.60 and HK$61.16.
Tuhu Car, which raised $145 million with a final price at the low point, is the second IPO this week to price at the low end of the range.
According to the documents, three cornerstone investors, led by New China Capital Management, bought roughly $96.8 million worth of Fourth Paradigm stock, or 70.6% of the IPO.
According to the company’s website, since its founding in September 2014, Fourth Paradigm’s products have been used in various industries, including finance, retail, manufacturing, healthcare, energy and power, telecommunications, and others.
According to documents, Fourth Paradigm’s pre-IPO backers include Goldman Sachs (GS.N), Sinovation, Haitong International Investment, and other state-backed entities.
