Fourth Paradigm Proposed Listing on the Main Board of the Hong Kong Stock Exchange

• Offer Price is Between HK$55.60 and HK$61.16 per Share
• To Raise Proceeds Up to Between HK$1.02Billion and HK$1.13Billion

China’s largest platform-centric decision-making AI company – Beijing Fourth Paradigm Technology Co., Ltd. (HKG: 6682), proposes to list its H Shares on the Main Board of The Stock Exchange of Hong Kong Limited (the Hong Kong Stock Exchange). 

Fourth Paradigm plans to offer 18,396,000 Shares (subject to the over-allotment option), of which 16,556,400 Shares will be International Offer Shares (subject to reallocation and the over-allotment option), representing approximately 90% of the initial offer shares; the remaining 1,839,600 Shares will be Hong Kong Offer Shares (subject to reallocation), representing approximately 10% of the initial offer shares. The Offer Price is between HK$55.60 and HK$61.16 per Share, plus brokerage of 1.0%, SFC transaction levy of 0.0027%, Hong Kong Stock Exchange trading fee of 0.00565% and Accounting and Financial Reporting Council transaction levy of 0.00015% (payable in full on application in Hong Kong dollars and subject to refund).

Fourth Paradigm will open for Hong Kong Public Offering in Hong Kong at 9 a.m., September 18, 2023 (Monday), and close at 12:00 noon, September 21, 2023 (Thursday). Dealings in shares of Fourth Paradigm on the Main Board of the Hong Kong Stock Exchange is expected to commence on September 28, 2023 (Thursday). The shares will be traded in board lot of 100 shares each. The Company’s stock code will be 6682.HK.

China International Capital Corporation Hong Kong Securities Limited is the Sole Sponsor, Joint Global Coordinator, Sponsor-Overall Coordinator, Overall Coordinator, Joint Bookrunner and Joint Lead Manager. CCB International Capital Limited, CMB International Capital Limited and China Merchants Securities (HK) Co., Limited are the Joint Global Coordinators, Overall Coordinators, Joint Bookrunners and Joint Lead Managers. Paradigm Advisors Holdings Limited is the Financial Advisor. Cornerstone investors include New China Capital Management Limited, Beijing Zhongguancun Science City Science and Technology Growth Investment Partnership (Limited Partnership), and Montage Technology Holdings Company Limited. These investors subscribe for shares worthing approximately US $96.8million in total. 

Dr. Dai Wenyuan, Chairman of the Board, Executive Director, Chief Executive Officer and General Manager of Beijing Fourth Paradigm Technology Co., Ltd. said, “Our long-term goal and mission is to empower AI transformation and advance AI for all businesses. Holding the platform-centric strategy，we will continue to build technical barriers and optimize products and services, and continue to provide users with high-value services, continuously driving user success.

The Company estimates that it will receive net proceeds of approximately HK$885.0 million from the Global Offering, after deducting the underwriting commissions and other estimated offering expenses payable by the Company, at the Offer Price of HK$58.38 per Share (being the mid-point of the indicative range of the Offer Price of HK$55.60 to HK$61.16 per Share). Approximately 60%, or approximately HK$531.0 million, is expected to be allocated over the next three years to enhance the Company’s fundamental research, technological capabilities and solution development. Approximately 20% or approximately HK$177.0 million, is expected to be allocated over the next three years to expand the Company’s offerings, build its brand and enter into new industry sectors. Approximately 10%, or HK$88.5 million, is expected to be allocated over the next three years to pursue strategic investment and acquisition opportunities to implement the Company’s long-term growth strategy to develop its solutions and expand and penetrate the industry verticals it covers. And approximately 10%, or HK$88.5 million, is expected to be used for general corporate purposes.

Founded in 2014, Beijing Fourth Paradigm Technology Co., Ltd. is a leader in enterprise AI. The Company offers platform-centric AI solutions that can be rapidly deployed by enterprises on a large scale to uncover hidden patterns in data and comprehensively enhance their decision-making capabilities. Fourth Paradigm was the largest player by revenue in the platform-centric decision-making AI market in China in 2022, having a market share of 22.6%, according to the CIC Report. In March 2023, in addition to decision-making AI solutions, Fourth Paradigm launched SageGPT, an enterprise-grade generative AI product specially designed for business scenarios. SageGPT features multimodal interaction and enterprise-ready AI tools.

Fourth Paradigm’s focus has always been the value it creates for users and the success of users. Its end-to-end solutions directly address the challenges faced by enterprises in large-scale deployment of AI. The low- and/or no-code nature of its solutions empowers users in any industry with or without AI experience to implement its solutions easily and rapidly without involvement of AI experts, enabling enterprises to benefit from AI transformation. Fourth Paradigm’s strong value proposition and efforts to enable user success are evidenced by the results it has achieved with users. Fourth Paradigm has served a large number of lighthouse users who are market leaders in the respective industries they operate, including but not limited to finance, retail, manufacturing, energy and power, telecommunications, transportation, technology, education, media and healthcare.

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