Facial recognition software company Megvii Technology embarks on Shanghai listing again after previous failed attempts

 

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The Shanghai Stock Exchange has restarted Megvii’s registration process after the company updated its financial information, according to information disclosed by the exchange. 

If successful, Megvii, registered in the Cayman Islands with a variable interest entity structure, will become the third firm to issue Chinese depository receipts. Megvii plans to raise over 6 billion yuan ($836.4 million) by issuing no more than 253 million CDRs, according to the prospectus. The proceeds will be used for basic R&D, Internet of Things solutions, robots, and sensor R&D.

Alibaba affiliates Ant Group and Taobao China hold a combined 29.4% stake in Megvii. Founders Yin Qi, Tang Wenbin, and Yang Mu are the de facto controllers even though they own a total of 16.8% of Megvii’s equity.

Megvii suspended its planned share offering on the Star Market in Shanghai in March after it failed to get registration approval. It first filed for a listing in Hong Kong in August 2019. In October, the US listed Megvii as an entity believed to be involved in activities contrary to US foreign policy interests and the firm shifted its focus to the mainland capital market.