BRIEF: Nuobikan seeks up to $51.4 million in Hong Kong IPO

AI technology company Nuobikan Artificial Intelligence Technology (Chengdu) Co. Ltd. (2635.HK) launched its Hong Kong IPO on Monday, aiming to sell 3.8 million shares for between HK$80 and HK$106 per share. The company is aiming to raise up to HK$400 million ($51.4 million), with its shares set to make their trading debut on Dec. 23. China International Capital Corp. (CICC) is the sole sponsor.

Nuobikan develops and sells monitoring and inspection products and solutions for railway operators and power grid companies, as well as other urban governance solutions. The company mainly provides integrated hardware-and-software solutions based on comprehensive industry-specific AI models, which are used for monitoring, inspection and maintenance purposes.

In the first six months of this year, Nuobikan recorded revenue of 230 million yuan, up 24.7% year-on-year. Its net profit fell 21% to 40.08 million yuan over the same period.

The company said it plans to use around 40% of the IPO proceeds for iterations of its industry AI models, covering sectors such as transportation, energy and urban governance. Another 40% will go to building an R&D technology center and a new headquarters. About 10% will be reserved for potential strategic investments and acquisitions, with the remaining 10% earmarked for working capital and general corporate purposes.

By Lee Shih Ta

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