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.