What’s Going On Here?SenseTime is reportedly kicking off its planned stock market listing yet again, proving nothing can keep a plucky Chinese facial recognition company down. What Does This Mean?SenseTime’s journey to the stock market has been anything but smooth. The company first planned to list on the stock market earlier this year, only to put the initial public offering (IPO) on hold when China’s crackdowns risked ruining its clout with investors. But when the country’s regulators didn’t end up sniffing around, the company felt newly emboldened: SenseTime announced earlier this month that the IPO would go ahead as planned.
Until last week, that is, when the US government added SenseTime to a blacklist banning Americans from investing in a host of companies, citing its alleged human rights violations. But the company’s nothing if not resilient: SenseTime’s reportedly managed to get more Chinese investors on board, which should allow it to raise the cash it’s aiming for. Why Should I Care?For you personally: It’s about the long game.
SenseTime might be trying to get in while the going’s good: companies raised 23% more cash in the first three-quarters of this year via IPOs than the whole of last year. But savvy Finimizers know to look beyond day one: when you do, you’ll see stocks of companies that listed to great fanfare this year – including trading app Robinhood and ride-hailing firm Didi – valued at around half as much as they were when they first listed.
The bigger picture: r/Reddit hits the stonk market.
SenseTime isn’t the only company that wants to buck that trend: Reddit announced plans earlier this week to list on the US stock market. Investors have been clamoring for this IPO ever since the social media company helped fuel the meme stock frenzy earlier in the year, and it can’t hurt that the company’s spent the last few years building a successful advertising business either. | 