Beijing-based artificial intelligence company Z.AI Co Ltd raised a total of $5 billion from a Hong Kong share placement of about $2 billion and a concurrent convertible bond sale of about $3 billion, the company said in a Hong Kong stock exchange filing on Sunday.
Z.AI launched the sales on Friday, offering 21.97 million new Hong Kong shares at HK$714 ($91.05) each, a 10 per cent discount to Friday’s closing price of HK$793.
The company also raised 20.14 billion yuan ($3 billion) through zero-coupon bonds due in September 2027, the filing showed. The yuan-denominated bonds will be settled in US dollars.
The bonds were issued at 100.5 per cent of their face value, the filing showed. The initial conversion price is HK$892.50, a 25 per cent premium to the HK$714 share placement price.
Z.AI can redeem all, but not part, of the bonds from February 18, 2027, if its shares trade at or above 130 per cent of the conversion price for 20 out of 30 trading days, according to the filing.
About 60 per cent of the net proceeds will be used for research and development of the company’s next-generation models and its fully self-training system, Z.AI said in the filing.
Another 15 per cent of the proceeds will be used for the company’s expansion plans, while the rest will be used to optimise its capital structure, replenish working capital for daily operations and for other general corporate purposes, according to the filing.
The fundraising comes as Chinese AI developers seek capital for the costly computing infrastructure and talent needed to compete with larger US rivals.
Z.AI, formerly known as Zhipu AI, went public in Hong Kong in January and raised about $4 billion in a follow-on share sale in July.
