4Paradigm Renews Files Aiming An IPO on HKEX Again

Technology Author: Fuller Wang, South China Morning Post Sep 07, 2022 12:49 AM (GMT+8)

Founded in 2014, 4Paradigm provides AI software that allows enterprises to develop their own decision-making AI applications in a range of industries such as banking, insurance, retail and agriculture.

artificial intelligence

Chinese artificial intelligence (AI) firm Beijing Fourth Paradigm Technology, or 4Paradigm, has filed for a Hong Kong initial public offering for the third time after two failed attempts to land a listing. 4Paradigm warned that 'export controls and economic or trade restrictions' may impact its business, according to its latest prospectus filed with the Hong Kong stock exchange on Monday. Previous applications to go public in August 2021 and last February lapsed for unknown reasons.

The company is the latest Chinese AI company to pursue a public listing in the city, which has targeted firms developing cutting-edge technology and limited access to advanced semiconductors, a critical component for powering AI computing. Founded in 2014, 4Paradigm provides AI software that allows enterprises to develop their own decision-making AI applications in a range of industries such as banking, insurance, retail and agriculture. The start-up has raised more than USD 1 billion from Goldman Sachs, Sequoia China, and Citic Private Equity, among others. It was valued at about USD 3 billion last year.

Like many of its AI peers, 4Paradigm remains in the red. Its net loss in the first half of the year totaled nearly CNY 204 million (USD 29.4 million), 19% less than what it lost in the same period last year. Revenue grew 34% to nearly CNY 1.1 billion in the same period, according to its prospectus.