Chinese AI company Zhipu has launched a Hong Kong share placement worth about $2 billion and a convertible bond offering of about $3 billion, bringing the combined fundraising size to roughly $5 billion, according to Reuters. The company plans to issue 21.97 million new shares at HK$714 each, a discount of about 10% to the HK$793 closing price. In parallel, it is offering RMB 20.14 billion, or about $3 billion, in zero-coupon convertible bonds due in September 2027. The bonds are being sold at 100% to 100.5% of face value, implying a yield of -0.5% to 0%, with an initial conversion price of HK$892.5, representing a 25% premium to the placement price. Proceeds are set to be used mainly for research and development, computing resources and related infrastructure, while also supporting business expansion, strategic investments, potential acquisitions, working capital and other general corporate purposes. Reuters said the share placement and the convertible bond deal are being launched at the same time, but closing of one transaction is not conditional on the other.
Chinese artificial intelligence company Zhipu has launched a Hong Kong share placement of about $2 billion and a convertible bond sale of about $3 billion, for a combined fundraising target of roughly $5 billion, according to Reuters.
Zhipu plans to sell 21.97 million new shares at HK$714 each. That price represents a discount of about 10% to the previous closing price of HK$793.
At the same time, the company is offering RMB 20.14 billion, or about $3 billion, in zero-coupon convertible bonds due in September 2027. The bonds are being marketed at 100% to 100.5% of face value, which corresponds to a yield range of -0.5% to 0%.
The initial conversion price is set at HK$892.5, a 25% premium to the share placement price.
Zhipu said the proceeds will be used mainly for research and development, computing resources and related infrastructure. The funds are also intended for business expansion, strategic investments, potential acquisitions, working capital and other general corporate purposes.
Reuters added that the equity placement and the convertible bond offering are being conducted in parallel, but completion of one transaction does not depend on completion of the other.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
