Chinese chipmaker seeks to raise up to US$838 million with shares

Chinese AI chip design company Shanghai Biren Technology plans to raise between US$801 million and US$838 million through a share placement in Hong Kong, according to a draft document seen by Reuters late on Friday.

Biren is offering 136 million new shares in Hong Kong at a price of US$6.16 each. This price range represents a discount of 5.8% to 9.9% from the stock's last close on Friday of $6.54.

The shares represent approximately 5.6% of the company's current share capital and approximately 5.3% after the sale.

China is encouraging local companies to produce more domestic chips, after US export restrictions limited access to some advanced foreign technologies.

Biren plans to use the funds to enhance research and development, accelerate the sale and production of next-generation products, make strategic investments and acquisitions, as well as working capital and other general corporate purposes.

Shares are expected to begin trading on July 6.

Biren was listed on the Hong Kong Stock Exchange in early January.

The company raised US$714 million from the initial public offering (IPO) and its shares rose about 162% from the offering price of HK$19.60 to Friday's close.

Founded in 2019, Biren designs chips and computing systems for artificial intelligence and attracted attention in 2022 with its BR100 chip, considered by the industry as a Chinese competitor to Nvidia's advanced processors.

Biren did not respond to a request for comment emailed outside office hours on Friday evening.

Source: CNN