SoftBank-backed CloudMinds is said to weigh US$500 million HK IPO

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

The Shanghai-based firm is working with China International Capital Corp (CICC) and Haitong International Securities Group 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.

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, the Hong Kong-listed unit of Foxconn Technology Group, among its investors.

CloudMinds in 2019 filed for a US listing and listed Citigroup, JPMorgan Chase and UBS Group 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. BLOOMBERG