China’s ‘AI dragon’ CloudWalk looks to raise $579m from STAR Market IPO

AI technology firm CloudWalk Technology Co., Ltd plans to list on Shanghai’s STAR Market with a 3.75 billion yuan ($579 million) initial public offering (IPO), a prospectus filed with the Shanghai Stock Exchange showed.

Upon listing, CloudWalk will become the first of China’s four “AI dragons” to go public, ahead of Yitu, SenseTime, and Megvii.

CloudWalk’s IPO application, which was submitted in December last year, was accepted on July 20.

The company aims to issue up to 112 million shares. The proceeds from the IPO will be used for a slew of programmes pertaining to man-machine operating systems and AI solutions, and also to meet working capital needs. 

Chinese investment bank and brokerage firm China Securities is the principal underwriter for the deal.

Headquartered in Southeast China’s Guangzhou city, CloudWalk specialises in leveraging technologies such as cognitive computing and big data to transform intelligent industries and for sustainable living.

CloudWalk’s business spans four areas — AI finance, AI governance, AI transportation, and AI business. AI finance accounts for an 82.8% share of the company’s overall business.

Since its inception in 2015, the company has built a pipeline of products including AI definition devices, intelligent finance, scenario definition device, face scan payment terminal, and intelligent commerce, among other things. It claims to have served 300 million users.

Its turnover over the past three years stood at 755 million yuan ($117 million) in 2020, 807 million yuan ($125 million) in 2019, and 484 million yuan ($75 million) in 2018. 

CloudWalk has a wholly-owned unit in the US with a focus on AI research and development in partnership with AI industry laboratories. 

CloudWalk had secured 1.8 billion yuan ($278 million) in a Series C round of financing in May 2020 from state-backed investors including China Internet Investment Fund (CIIF), Nansha Financial Holding, Industrial and Commercial Bank of China (ICBC), as well as Guosheng Group. 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.