SenseTime Said to Get About $500 Million Cornerstone Investment

According to individuals familiar with the situation, Chinese artificial intelligence firm SenseTime Group Inc. has acquired around $500 million in cornerstone funding ahead of its anticipated Hong Kong IPO.

The fundraising was attended by nine investors, according to the persons, who asked not to be identified since the process is confidential. According to them, the Mixed-Ownership Reform Fund, which has contributed $200 million, is still the largest on the list.

A firm spokesman did not immediately reply to a request for comment.

The US Treasury Department sanctioned SenseTime last week for its alleged participation in developing facial-recognition software, delaying the company’s IPO. The allegations, according to the firm, are baseless.

The AI firm has stated that it intends to complete its IPO. According to Bloomberg News, SenseTime is contemplating reopening orders as soon as Monday, and the offering will be similar to what was previously intended. According to the prospectus, the business had earlier intended to sell 1.5 billion shares for HK$3.85 to HK$3.99 each.