Story
Zhipu AI Shares Surge After Raising $4 Billion in Secondary Offering
Summary
Shares of Zhipu AI, trading as Knowledge Atlas Tech, rose sharply on Thursday after the company raised approximately $4 billion in a secondary share sale. The stock's performance was also bolstered by key investors reaffirming their long-term commitment, which eased market concerns.
Shares of the artificial intelligence company Zhipu AI, which trades as Knowledge Atlas Tech Joint Stock, surged 14.7% to HK$2,094 on Thursday. The jump followed the completion of a secondary share sale that raised approximately HK$31.4 billion (about $4 billion). The company priced 19.78 million shares at HK$1,588 each, a discount of roughly 13% to its previous closing price. Zhipu AI stated the proceeds will be used to strengthen its capital base and fund research and development for its large language models.
The successful placement occurred just after a significant lock-up period for early investors expired on July 8. While such events can sometimes lead to heavy selling pressure, a group of major cornerstone investors, including state-backed capital and government-linked funds, publicly reaffirmed their long-term commitment to the company. This move reportedly neutralized market concerns about a potential stock overhang.
Adding to the positive sentiment, recent reports suggest Zhipu AI is exploring the development of its own custom ASIC chips to power its GLM family of models. This potential move is seen as an effort to reduce its reliance on third-party AI hardware suppliers.
AdThe rally was also supported by a broader upswing in Hong Kong's technology sector, with the Hang Seng Tech Index rising this week amid a wave of AI-related announcements from other Chinese tech firms. Zhipu AI has been a strong performer since its market debut in January, with its stock price increasing by nearly 1300% as investors show enthusiasm for its role in the AI industry.