Tang Xiao’ou, an professor and an MIT grad suddenly found himself among the richest in the world as he personal wealth increased manifolds after a successful IPO of company he co-founded.
SenseTime Group shares surged as much as 23% from their IPO price on Thursday, adding billions of dollars to the artificial intelligence start-up`s market value as it debuted in Hong Kong in the city`s final major float for the year.
Even when SenseTime’s share had grown by 11 per cent at the end of morning session, net worth of Xiao’ou had touched USD 3.9 billion.
Some analysts had expected the shares to struggle due to weak demand during the IPO process and worries about SenseTime`s inclusion on a U.S. investment blacklist that prompted the Chinese firm to shelve its first attempt to list.
“The main reason that support is coming to the share price is that the market had already digested the U.S. sanction issue,” said Kenny Ng, Everbright Sun Hung Kai analyst.
“SenseTime set the IPO price at the lower end of the range which left room for the price performance after listing.”
The Chinese company raised $740 million in its initial public offering and priced its shares at HK$3.85 ($0.4937) each.
The deal valued SenseTime at $16.4 billion, while at the session`s high its market capitalisation had added some $3.8 billion.
SenseTime ended at HK$4.13 in its debut session, up 7.3% from its IPO price. It was the fifth most actively traded stock by turnover with 329.97 million shares changing hands worth HK$1.406 bln.
The broader Hang Seng Index gained just 0.11% while tech stocks in Hong Kong were marginally positive on the day.
SenseTime`s IPO was Hong Kong`s fifth largest in 2021, Dealogic data shows.
Hong Kong has struggled to attract big ticket deals this year due to a regulatory crackdown on a number of sectors by Chinese authorities.
(With inputs from agencies)