SenseTime Group Watchlist
SenseTime IPO Initiation: Big Brother
Equity Capital Markets
233 Views, 05 Dec 2021 20:46
SenseTime Group (1475539D HK) is the largest AI software company in Asia as measured by revenue in 2020. It is set to launch an HKEx IPO to raise US$770 million.
- The fundamentals are mixed as high growth is accompanied by high customer concentration, an uncertain path to profitability, cash burn and moral concerns around “ethnic profiling software”.
- Overall, we believe the negatives outweigh the positives and we would give the IPO a pass.