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CHINA BRIEF | Megvii says Hong Kong listing is still on track despite lapsed IPO application

The company’s IPO progress was partly disrupted by the coronavirus outbreak in China.

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Chinese facial recognition startup Megvii said that its Hong Kong initial public offering (IPO) is still on track, in response to earlier media reports indicating that the company’s IPO application has lapsed.

The company told KrASIA that its IPO application will be reactivated after submitting additional files to the Hong Kong board. According to Hong Kong rules, firms are able to renew lapsed applications within three months of expiration. Additional documents may include updated financial data for 2019, Reuters reported citing anonymous sources.

The facial recognition developer filed a USD 500 million Hong Kong listing application on August 25, and according to the rules of the Hong Kong stock exchange, firms have six months from the application date to start listing.

Megvii’s filing for Hong Kong IPO was cleared by the city’s stock exchange in January, and the company planned to file the updated prospectus after the Chinese New Year holidays. However, the progress was partly disrupted by the coronavirus outbreak in China, which has affected business activities throughout the country.

This article is part of KrASIA’s “China Brief” section, where KrASIA’s reporters will provide quick daily updates about the tech ecosystem in China.