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Shanghai Biren shares slide after it announces HK$4 billion placement
The company plans to issue 130 million new shares at HK$31.08 each, a price about 10.0% below the prior close.
HousingWire reports that shares of Hong Kong-listed artificial intelligence chipmaker Shanghai Biren Technology fell more than 12% in Hong Kong on Thursday following plans to raise HK$4 billion, or about US$510 million, through a share placement.
According to the filing, Biren engaged placing agents on a “best effort” basis to sell 130 million new shares at HK$31.08 each, a level described as roughly 10.0% below the stock’s closing price of HK$34.44 on the prior day.
The offering would represent about 5.0% of its total issued shares as of Wednesday, according to the company’s exchange disclosure.
Biren shares slid to as low as HK$30.24 before ending the session down 11.9% at HK$30.36 on Thursday.