Shares of AI chipmaker Biren slump 6 percent following $4b share sale
Shares of Chinese AI chip provider Shanghai Biren Technology (6082) plunged 6 percent following a HK$4 billion share sale plan, its second attempt to raise funds in just three months.
Shares of Chinese AI chip provider Shanghai Biren Technology (6082) plunged 6 percent following a HK$4 billion share sale plan, its second attempt to raise funds in just three months. The company, one of China's "four little GPU dragons", is selling 130 million H shares at HK$31.08 apiece, according to a filing on Thursday.
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The shares, representing around 8.71 percent of its H shares and 4.8 percent of the enlarged shares, are being sold at a nearly 10 percent of the last closing price. In light of the strong market demand for high performance AI chips, the group has formulated a production plan involving substantial volumes, with customer sampling and volume production expected over the coming quarters, the filing said.
It needs to bring forward procurement and capacity reservations to support its anticipated production and delivery schedules, it added. The net proceeds would be used for strategic supply-chain procurement, production readiness and commercialization of the company's new-generation products, further enhance research and development capabilities and software ecosystem, and for working capital and general corporate purposes, the filing said.
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