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Chinese AI developer Xiao-I (XI) has proposed terms for a downsized $47M US initial public offering.
Xiao-I is planning to offer 6M American Depositary Shares, equaling 2M ordinary shares, priced between $6.80 and $8.80, which would raise around $47M if priced at the midpoint, according to its filing.
The deal appears to have been downsized from a proposal made in December, which indicated the company was seeking to raise around $60M.
Xiao-I hopes to list its shares on Nasdaq under the symbol XI. Prime Number Capital and Guotai Junan International are serving as lead bookrunners on the deal.
Incorporated in the Cayman Islands, Xiao-I operates through a variable interest entity in China. The company is a developer of AI-based natural language processing products, with a focus on customer service solutions. It also offers machine learning, cloud computing and computer vision solutions.
The company is profitable. For the six-month period ended June 30, Xiao-I posted a net income of $591K on revenue of $12.9M.
AI stocks have been in play in recent weeks following news that Microsoft (MSFT) planned to make a multi-billion dollar investment in ChatGPT developer OpenAI. Chinese search engine giant Baidu (BIDU) is reportedly preparing to roll out a similar chatbot product.