Shares of artificial intelligence chipmaker Shanghai Biren Technology tumbled more than 12 per cent in Hong Kong on Thursday amid plans to raise HK$4 billion (US$510 million) through a share placement, as competition with other Chinese Nvidia challengers intensifies.
The sell-off followed a stock exchange filing by the Hong Kong-listed company on late Wednesday, which revealed it had engaged placing agents on a “best effort” basis to issue 130 million new shares at HK$31.08 apiece.
The offering price represents a roughly 10 per cent discount to the stock’s closing price of HK$34.44 on the previous day. The new shares would account for around 5 per cent of its total issued shares as of Wednesday, according to the filing.
Biren shares dropped to as low as HK$30.24 before closing down 11.9 per cent at HK$30.36 on Thursday.
