On Monday, in a statement Chinese artificial intelligence start-up SenseTime Group said, it has postponed its $767 million initial public offering (IPO) in Hong Kong.
The development comes after the United States placed it on its Entity List.
Sensetime also said, it remained committed to completing the offering and would publish a supplemental prospectus and an updated listing timetable.
According to SenseTime’s regulatory filing, the Chinese company had planned on selling 1.5 billion shares in a price range of HK$3.85 to HK$3.99, hoping to raise up to $767 million; SenseTime has trimmed this figure from an earlier target of $2 billion.
On Friday, the startup held urgent talks with the Hong Kong Stock Exchange over the future of its IPO following reports of it being placed in the US trade blacklist.
Sensetime has not provided details, including a timetable, for a revised IPO in its filing to the Hong Kong Stock Exchange on Monday.
“The company remains committed to completing the global offering and the listing soon,” said SenseTime in the filing.
It also mentioned it would refund all application monies in full without interest to all applicants who had subscribed to its shares in the offering process.
The U.S. Treasury has added SenseTime to a trade blacklist accusing it of having developed facial recognition technology which can determine a target’s ethnicity, with a special focus on ethnic Uyghurs.
According to the experts from the United Nations, China’s dictatorial regime has placed more than 1 million people, including Uyghurs, Tibetans, and members of other minorities, in modern concentration camps in Xinjiang.
China continues to deny the existence of forced labour camps despite mounting evidence.
Many governments, including the United States, as well as the United Nations has publicly accused Beijing of carrying out genocide in Xinjiang.