Chinese Auto Chip Maker Black Sesame to Raise $143 Million in Hong Kong IPO

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Black Sesame plans to issue 37 million shares at a price range of HK$28 to HK$30.3 per share.

Black Sesame Technologies Inc., a Chinese system-on-a-chip designer focused on autonomous driving systems, is seeking to raise up to HK$1.12 billion ($143 million) from its initial public offering (IPO) in Hong Kong.

The listing will be the second IPO under the new Chapter 18C listing rules introduced in March 2023, which allow companies engaged in specialty technologies to list in Hong Kong even if they are not yet profitable or unable to meet the Main Board’s earnings requirements.

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Black Sesame Technologies is raising HK$1.12 billion ($143 million) from its IPO in Hong Kong under Chapter 18C rules.
The company, a leading provider of high-computing SoCs for intelligent vehicles, plans an August 8 debut and cites significant R&D expenditure against substantial revenue growth.
Founded in 2016, Black Sesame has partnerships with major automotive manufacturers and has raised $696 million, with key investments from industry players like Tencent and Xiaomi.

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Who’s Who

Black Sesame Technologies Inc.: Black Sesame Technologies Inc., founded in 2016, is a Chinese system-on-a-chip designer specializing in autonomous driving systems. The company plans to raise up to HK$1.12 billion ($143 million) from its Hong Kong IPO on Aug. 8 under Chapter 18C listing rules. Despite revenue growth, high R&D costs have challenged profitability. The IPO proceeds will fund R&D, commercialization, and working capital. Key investors include Tencent Holdings and Xiaomi Inc.

QuantumPharm Inc.: QuantumPharm Inc. is a Shenzhen-based AI drug researcher backed by Tencent Holdings Ltd. It was the first company to debut under the new Chapter 18C listing rules in Hong Kong, raising HK$1.13 billion from its IPO on June 13.

Huatai International Financial Holdings Co. Ltd.: Huatai International Financial Holdings Co. Ltd. is one of the co-sponsors for Black Sesame Technologies Inc.'s IPO in Hong Kong. They are assisting with Black Sesame's planned debut on August 8.

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What Happened When

By December 2021：: Black Sesame was valued at $2.2 billion after its last financing round.

2023：: Black Sesame Technologies Inc. reported revenue of 312 million yuan and spent 1.36 billion yuan on R&D.

March 2023：: New Chapter 18C listing rules were introduced in Hong Kong.

June 13, 2023：: QuantumPharm Inc. debuted as the first IPO under the new Chapter 18C listing rules, raising HK$1.13 billion.

As of May 31, 2024：: Black Sesame had cash and cash equivalents totaling $945 million against current liabilities of $11.495 billion.

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