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Zhipu Aims for $4 Billion Share Sale After Stock Soars 1,500%
Summary
Chinese AI firm Zhipu, trading as Knowledge Atlas Technology, is seeking to raise approximately $4 billion in a new share offering. The move follows a nearly 1,500% increase in its stock value since its Hong Kong listing in January.
Chinese artificial intelligence company Zhipu is aiming to raise about $4 billion through a share sale, capitalizing on a significant surge in its stock price. The company, which trades as Knowledge Atlas Technology (HKEX:02513) on the Hong Kong exchange, has seen its shares climb almost 1,500% since its initial listing in January.
According to the terms of the deal, Zhipu is offering 19.8 million shares at a price range of HK$1,588 to HK$1,698 each. This pricing represents a discount of as much as 13% to the stock's closing price on Wednesday.
The company intends to use the proceeds from the sale for several key areas. These include funding research and development, business expansion, potential investments, and mergers and acquisitions. The funds will also be used to optimize its capital structure and for general corporate purposes.
AdFilings from the end of June show Zhipu had over 221 million H shares listed in Hong Kong and maintained its required 10% minimum public float. According to a separate report, Zhipu AI may also be seeking to develop its own custom chips to support its popular GLM-5.2 AI model.