Goldman Sachs Evaluating Role as Sponsor for Megvii Technology's IPO
October 08 2019 - 11:35PM
Dow Jones News
By Jing Yang
Goldman Sachs Group Inc. (GS) said it is evaluating its role as
a sponsor for the planned initial public offering by Megvii
Technology Ltd. in Hong Kong after the artificial intelligence
company was blacklisted by the U.S.
Earlier this week, the U.S. added 28 Chinese entities to an
export blacklist, citing their role in Beijing's repression of
Muslim minorities in northwest China.
The decision by the Commerce Department to add the firms to its
"entity list" means that suppliers will be barred from providing
U.S.-origin technology to them without a license.
In an emailed statement, Goldman said it is "evaluating in light
of the recent developments."
Megvii, which counts Alibaba Group Holding Ltd., Ant Financial
Services Group and Lenovo Group Ltd. among its shareholders, had
filed a draft IPO prospectus for a listing in Hong Kong. It had
appointed Goldman Sachs, J.P.Morgan and Citigroup as joint sponsors
for the IPO.
In Hong Kong, sponsors shepherd companies through a listing and
conduct due diligence and other functions.
On Tuesday, Megvii said that it objects to the company's
addition to the U.S. entity list. While it didn't directly refer to
its listing plan, it said that the direct business impact is
expected to be minimal and that "as of now, there are no changes to
Megvii's ongoing plans."
Established in 2011, Megvii provides facial-recognition
authentication solutions for Android smartphones, as well as
internet of things solutions for city management and logistics.
Write to Jing Yang at jing.yang@wsj.com
(END) Dow Jones Newswires
October 08, 2019 23:20 ET (03:20 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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