Zhipu launches approximately $5 billion financing: places $2 billion in new shares and simultaneously issues $3 billion in convertible bonds.

Beating AI News Flash: Zhipu (2513.HK) today launched a new share placement of approximately $2 billion in Hong Kong, alongside a concurrent issuance of approximately $3 billion in convertible bonds. The company is placing 21.97 million new shares at HK$714 per share, a discount of approximately 10% to Friday's closing price of HK$793. The convertible bonds are zero-coupon, maturing in September 2027, denominated in RMB but settled in USD, issued at 100% to 100.5% of face value, corresponding to a yield of negative 0.5% to zero; the initial conversion price is HK$892.50, a 25% premium to the placement price. If the share price reaches 130% or more of the conversion price on 20 out of 30 consecutive trading days, the company may redeem all bonds starting from February 18, 2027. The placement and bond issuance are conducted simultaneously but are not conditional on each other. CICC is acting as sole global coordinator, with Guotai Junan Securities (Hong Kong) serving as joint bookrunner.

The proceeds will be used for R&D, computing resources and related infrastructure, and to support expansion, strategic investments, potential acquisitions, working capital, and other general corporate purposes.