Zhipu launches $5 billion fundraising to expand AI computing power and infrastructure

Odaily reports: AI company Zhipu has launched approximately $2 billion in Hong Kong stock placement and approximately $3 billion in convertible bond issuance, with a total fundraising scale of approximately $5 billion.

Among this, Zhipu will issue 21.97 million new shares at a placement price of HK$714 per share, representing a discount of approximately 10% compared to the closing price of HK$793 on September 11; simultaneously, it will issue RMB 20.14 billion (approximately $3 billion) in zero-coupon convertible bonds, maturing in September 2027. The convertible bonds are issued at 100% to 100.5% of face value, corresponding to a yield of -0.5% to 0%, with an initial conversion price of HK$892.5, representing a 25% premium over the placement price.

Zhipu stated that the proceeds from the fundraising will primarily be used for research and development, computing power resources, and related infrastructure, as well as for business expansion, strategic investments, potential mergers and acquisitions, working capital, and other corporate purposes. The share placement and convertible bond issuance are being conducted simultaneously, but the completion of the two transactions is not conditional upon each other. (Reuters)