Ahead of its initial public offering (IPO) in Hong Kong, DreamSmart Group, the business that created the well-known smartphone brand Meizu, is getting ready. To aid the possible share sale, the firm, which last year turned its focus to creating artificial intelligence (AI) for mobile devices, has hired the services of Huatai Securities Co as well as CICC’s (China International Capital Corp). DreamSmart Group’s valuation from the IPO may exceed 15 billion yuan (RM9.8 billion) and maybe surpass 20 billion yuan, depending on the state of the market.
DreamSmart Group's History
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Meizu was first established twenty years ago as an MP3 music player maker. It has since grown to be a major participant in China’s developing smartphone market, competing with industry titans such as Xiaomi Corp. The business faced fierce rivalry from rivals like Oppo and Huawei Technologies Co. despite its early success. But in 2022, Zhejiang Geely Holdings Group Co., a major player in the Chinese car industry, gave Meizu fresh support, indicating a strategic turn towards AI research in step with modern trends.
Riding the AI Wave
DreamSmart Group’s choice to enter the AI space is in line with the prevailing trend in the market, which rewards businesses that are at the forefront of this innovative field. Meizu hopes to benefit from the increased interest in AI-related equities among investors, which has seen a rise in interest from major players in the consumer electronics industry such as Samsung Electronics Co. and semiconductor makers like Nvidia Corp. The company’s entry into AI is in line with a larger trend in the industry, whereby IT companies are adding AI features to their products to improve functionality and customer experience.
Market Reaction and Outlook
Analysts are still upbeat about DreamSmart Group’s IPO prospects in spite of the recent turbulence in Chinese smartphone stocks. Andy Meng and other Morgan Stanley analysts have emphasised the appeal of Chinese smartphone equities, especially in the aftermath of the recent market correction. The specifics, such as the make-up of the bank lineup and the size of the offering, may change as the IPO talks progress. Nonetheless, investors are keeping a close eye on events in anticipation of possible investment opportunities, and the general tone around the IPO is still optimistic.
Conclusion
The choice made by DreamSmart Group to pursue an IPO represents a critical turning point in its development as a major force in the mobile technology industry. Zhejiang Geely Holdings Group Co.’s support and a renewed emphasis on AI research put Meizu in a strong position to capitalise on its advantages and grab market share in the quickly changing technology sector. The company’s readiness for its initial public offering (IPO) is a reflection of both its goals and the excitement of the larger market for innovation and technical development. DreamSmart Group may be able to strengthen its position in the cutthroat tech industry and spur additional development and innovation in the AI sector as a result of the IPO’s success.
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