SenseTime (20 HK) Hong Kong
Report by Aequitas Research
Investment blacklist will further pressurise the upcoming US$18bn lock-up release - a limited free float likely explains why shares in this AI software provider have performed so strongly since listing despite sentiment surrounding its IPO being so weak. However, this will change drastically when the lock-up expires later this month. Even if one assumes that SoftBank, Alibaba and Cornerstone's won’t sell, there is still 45% of the company, worth US$11bn coming free. Furthermore, due to it being on the US investment blacklist, which bars US companies from investing in it, some shareholders will have to sell.