Kingsoft Cloud shares tumble after pricing new shares at a discount

Shares of Kingsoft Cloud (3896) slumped nearly 9 percent on Wednesday after the Chinese cloud services provider announced the pricing of its upsized HK$2.8 billion offering of new shares at a discount.

The company is selling 338 million new shares, or about 7.46 percent of its enlarged share capital, at HK$8.29 each, an 8.8 percent discount to Tuesday's close of HK$9.09, according to an exchange filing.

Net proceeds of HK$2.76 billion will be used mainly to support its artificial intelligence business, with 80 percent allocated to infrastructure expansion and cloud service upgrades, and the remainder for working capital and general corporate purposes, the company said.

STAFF REPORTER