Biren shares slide 6% after HK$4b placement plan
Shanghai Biren Technology shares fell 6 per cent after the AI chipmaker announced a HK$4 billion share sale, its second fundraising in three months. The company is selling 130 million H shares at HK$31.08 each, a near 10 per cent discount to the last close.
Shares of Shanghai Biren Technology (6082) plunged 6 per cent on Thursday after the Chinese artificial-intelligence chipmaker unveiled a HK$4 billion share placement, its second fundraising attempt in three months.
The company, counted among China's "four little GPU dragons", is selling 130 million H shares at HK$31.08 apiece, according to a filing. The shares represent about 8.71 per cent of its H-share capital and 4.8 per cent of the enlarged share base, priced at a nearly 10 per cent discount to the last closing price.
Biren said strong market demand for high-performance AI chips had prompted it to formulate a production plan involving substantial volumes, with customer sampling and volume production expected over the coming quarters. The group needs to bring forward procurement and capacity reservations to support its anticipated production and delivery schedules, the filing added.
Net proceeds from the placement will be used for strategic supply-chain procurement, production readiness and commercialisation of new-generation products, as well as to enhance research and development capabilities and the software ecosystem. Funds will also support working capital and general corporate purposes.
The share sale marks Biren's second attempt to raise capital in three months, underscoring the company's aggressive expansion amid surging demand for AI computing power. The stock's 6 per cent decline reflects investor concerns over dilution following the discounted placement.