Shanghai Biren Technology Co. aims to raise HK$4.04 billion ($515 million) in another share sale to help bankroll its artificial intelligence ambitions, adding to the fundraising spree from Chinese AI companies.
Biren, one of a group of graphics processing unit developers championed by Beijing, is placing 130 million new shares at HK$31.08 apiece, according to a Hong Kong stock exchange filing. That represents a nearly 10% discount to Wednesday’s close.
Biren already raised about $900 million in a July share sale, agreeing at the time not to sell any more stock for 90 days. The latest placement confirms a Bloomberg News report from September, though at the time people familiar with the matter said the company was considering raising as much as $1 billion.
Biren slid as much as 4.9% early Thursday. Its Hong Kong-listed shares have fallen more than 50% from a June peak, trimming this year’s overall advance to about 70%.
China’s AI leaders are raising funds to help them challenge global frontrunners such as Anthropic PBC and OpenAI, even as caution grows · about the rapid rate of AI development. Z.AI Co. announced a $5 billion stock and convertible bond offering in September, shortly after the lockup expired on a $4 billion deal in July. Hong Kong’s biggest-ever follow-on offering came in August, with Alibaba Group Holding Ltd. raising $10.2 billion to spend on advancements in AI.
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Biren said in Thursday’s filing that it is at a “critical inflection point in its development” and that the proceeds of the placement will go to supply-chain procurement and commercialization of next-generation products, research and development and software enhancement, working capital and general corporate purposes.
China International Capital Corp. and UBS AG are overall coordinators and placing agents.
Shanghai-based Biren listed in Hong Kong at the start of this year, climbing more than 70% on its first day .