Xiaomi-Backed Chipmaker Black Sesame Falls in Hong Kong Debut as AI Frenzy Wanes

(Bloomberg) — Shares of artificial intelligence (AI) chipmaker Black Sesame International Holding Ltd. tumbled as much as 35% on their debut, dealing a blow to Hong Kong’s efforts to lure more technology listings.

The Xiaomi Corp.-backed company’s shares fell to as low as HK$18.28 ($2.34) Thursday in the Hong Kong Stock Exchange and closed the day 27% lower. They had been priced at HK$28, the bottom of the marketed range in an initial public offering (IPO) that raised HK$1.04 billion ($133 million).