(Bloomberg) — DreamSmart Group, the smartphone maker that last year focused on developing artificial intelligence for mobile devices, has picked banks to prepare for its initial public offering in Hong Kong, valued at more than 15 billion yuan (2 .1 billion US dollars).
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The startup behind the popular smartphone brand Meizu is working with China International Capital Corp. and Huatai Securities Co. in a possible share sale this year, the people said. The company, owned by Chinese automaker Zhejiang Geely Holdings Group Co., could seek a valuation of up to 20 billion yuan for the offering, depending on market conditions, one of the people said.
Deliberations are ongoing and details of the IPO, including the composition and size of banks, could change, the people said. A representative for DreamSmart declined to comment, while representatives for CICC and Huatai did not respond to requests for comment.
Meizu was founded two decades ago as an MP3 music player provider, alongside bigger names like Xiaomi Corp. one of the pioneers of China's then emerging smartphone industry. With the support of Alibaba Group Holding Ltd. The company launched trendy devices and created a system that initially gained recognition but later gave up to more aggressive competitors such as Oppo and Huawei Technologies Co. Billionaire Li Shufu's auto company acquired the brand in 2022, which began developing AI around the time ChatGPT brought the concept into the mainstream.
Smartphone maker Meizu is one of several companies hoping to fuel investor enthusiasm for AI stocks, from high-end computer and component suppliers such as Nvidia Corp. to device makers like Samsung Electronics Co. trying to incorporate AI into their gadgets.
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Chinese smartphone stocks in particular are looking attractive after a recent selloff, Morgan Stanley analysts including Andy Meng wrote on Monday.
– With assistance from Jessica Sui, Gao Yuan and Will Davies.
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