SoftBank-Backed CloudMinds Weighs $500 Million Hong Kong IPO

(Bloomberg) -- Artificial intelligence-powered robot developer CloudMinds Inc. is considering a Hong Kong initial public offering that could raise as much as $500 million, according to people familiar with the matter.

Most Read from Bloomberg

• Biden to Urge 25% Billionaire Tax, Levies on Rich Investors

• Rookie Traders Are Earning $400,000 in One Unlikely Markets Hub

• More Eye-Drop Products Recalled in US for Possible Contamination

• Meta Plans Thousands More Layoffs as Soon as This Week

• Your Next Holiday Flight Will Cost a Fortune

The Shanghai-based firm is working with China International Capital Corp. and Haitong International Securities Group Ltd. on preparations for the share sale, the people said. A listing could take place as early as this year, said the people, who asked not to be identified as the information is private.

Deliberations are preliminary and details of the IPO, including size and timeline, could change, the people said. Representatives for CICC, CloudMinds and Haitong didn’t immediately respond to requests for comment.

CloudMinds could be joining other tech startups in tapping the Hong Kong IPO market instead of going for a US listing as China steps up scrutiny of sensitive technology and tightens oversight of data security. Ubtech Robotics Corp. in January filed a preliminary prospectus for its Hong Kong IPO.

Founded in 2015, CloudMinds develops cloud-based robots with artificial intelligence that can be used in restaurants and hotels for food delivery, cleaning and patrolling, according to its website. It also runs an interactive visual interaction platform that could be tailor-made for banks, shopping malls and transportation hubs for handling customer queries. The startup counts the SoftBank Vision Fund and FIH Mobile Ltd., the Hong Kong-listed unit of Foxconn Technology Group, among its investors.

CloudMinds in 2019 filed for a US listing and listed Citigroup Inc., JPMorgan Chase & Co. and UBS Group AG as the arrangers. The US in May 2020 sanctioned the startup by adding some of its affiliated companies to the entity list, blocking it from sharing US-origin technology.

--With assistance from Jane Zhang.

(Adds Ubtech’s listing plans in fourth paragraph.)

Most Read from Bloomberg Businessweek

• Health-Care Oversight Rule Changes Create Legal Risk for US Employers

• Business Schools Soften Admissions Requirements to Scoop Up Laid-Off Tech Workers

• Google’s Plan to Catch ChatGPT Is to Stuff AI Into Everything

• America’s $52 Billion Plan to Make Chips at Home Faces a Labor Shortage

• Even Wealthy Landlords Are Skipping Payments on Office Buildings

©2023 Bloomberg L.P.