Google-Backed AI Firm Is Hong Kong’s Latest Stock Debut Flop
Apr 24, 2024 - bloomberg.com
Chinese artificial intelligence developer, Mobvoi Inc., experienced a 22% drop in its first day of trading in Hong Kong. This marks the third stock debut to underperform in the city this week. Despite shares being sold near the lower end of the indicated price range for its initial public offering, the company and its shareholders only managed to raise HK$321 million ($41 million), significantly less than the $200 million to $300 million target set last year.
This downturn in Mobvoi's performance contrasts with the overall gains in Hong Kong and Asian stock markets on Wednesday. The disappointing debut of the Google-backed company indicates a challenging environment for new listings in the city.
Key takeaways:
Mobvoi Inc., a Chinese AI developer backed by Alphabet Inc.’s Google, dropped as much as 22% in its first day of trading in Hong Kong.
This marks the third stock debut to flop in Hong Kong this week.
The shares tumbled even after they were sold near the low end of the indicated price range for its initial public offering.
The company and its shareholders raised HK$321 million ($41 million), much lower than the $200 million to $300 million it was said to be targeting last year.
