Chinese artificial-intelligence model developer Zhipu, which is listed in Hong Kong as Knowledge Atlas Technology (HKEX:02513), has proposed a share sale that targets about $4 billion, according to the deal terms filed by the company. The move comes after the stock climbed nearly 1,500% since it listed in January.
The proposed placement comprises 19.8 million shares, priced between HK$1,588 and HK$1,698 apiece. At the top of that range, the offering implies a discount to the previous session's closing price of as much as 13%.
Use of proceeds and corporate objectives
Zhipu stated the proceeds will be allocated to research and development, business expansion, investments and mergers and acquisitions. The company also cited intentions to optimize its capital structure and to bolster working capital and other general corporate needs.
Share register and public float
In a monthly return filed for the Hong Kong exchange, Zhipu reported 221,314,605 H shares listed on the exchange as of the close of June. The filing confirmed the company met the 10% minimum public float requirement at the end of last month.
The filing further shows Zhipu holds 224,528,485 unlisted shares, bringing the total number of issued shares to 445,843,090.
Report on custom chip efforts
Separately, The Information reported on Monday that Zhipu AI is pursuing the development of its own custom chips or ASICs. That report framed the pursuit of custom silicon amid heavy adoption of the company’s GLM-5.2 AI model.
Details in the filing and the terms of the proposed offering indicate the company is moving to expand its balance sheet and fund strategic initiatives without altering the reported share counts disclosed in the monthly return.
This article presents the company-stated terms of the offering and the information disclosed in the company filing, and reports the outside report of custom chip efforts as noted above.