5-7-2023 (HONG KONG) Fourth Paradigm Technology, an AI startup, has successfully completed the procedural requirements for its planned initial public offering (IPO) in Hong Kong. The company’s achievement makes it one of the few firms to receive approval from China’s securities regulator under the new rules implemented this year.
According to a filing on the China Securities Regulatory Commission (CSRC) website on July 3, Fourth Paradigm has completed the offshore listing filing process, marking a significant milestone in its IPO journey.
This greenlight comes at a time when regulatory scrutiny of share offering proposals has intensified, leading to longer waiting times for approvals. The new listing rules, which were implemented on March 31 in response to a regulatory crackdown on offshore listings, have raised the bar for companies seeking IPO approvals.
Fourth Paradigm, also known as 4Paradigm, submitted its fourth IPO application to the Hong Kong Stock Exchange in April. The company, along with another firm, received the CSRC’s approval on July 3, joining the two companies that were given the greenlight earlier this year. However, none of these companies have gone public yet.
It’s worth noting that Fourth Paradigm was added to the U.S. “Entity List” this year, resulting in restrictions on the export of U.S. technology to the company unless a special license is obtained from the Commerce Department.
Established in September 2014, Fourth Paradigm has developed products widely used in various sectors such as finance, retail, manufacturing, healthcare, energy and power, and telecommunications, according to its website.
Notable investors in Fourth Paradigm include Goldman Sachs, Sinovation, Haitong International Investment, and several state-backed funds, as revealed in the CSRC filing.
The coordinators of the IPO are China International Capital Corp, CCB International, China Merchants Securities, and CMB International, as indicated in the filing with the stock exchange.
