Moore Threads Technology, dubbed "China's Nvidia", has confidentially filed for a Hong Kong initial public offering after its shares plunged to a new low since its Shanghai listing late last year, according to the International Financing Review.
Despite the recent volatility, the share sale could still raise at least US$1 billion (HK$7.8 billion) in fresh funding for the graphics processing units maker, the report said, citing sources familiar with the matter.
The AI chipmaker said last month that it was actively engaging in discussions with relevant intermediaries about listing, and that the H-shares issuance is subject to shareholder and relevant regulatory approvals.
Moore Threads soared by over 420 percent to 605 yuan in its STAR Market debut in December after raising nearly 8 billion yuan (HK$9.3 billion) from the share sale. The stock closed at around 400 yuan on Tuesday, giving it a market value of 188 billion yuan.
Its shares have more than halved from a record of 941 yuan, but remained 2.5 times above its Shanghai offer price.
The report indicated that the company plans to allocate the proceeds toward R&D and commercialization, sales network development, strategic investments and acquisitions, as well as general working capital.
Riding the AI wave, the chipmaker cut its net loss by a whopping 95.7 percent to 11.56 million yuan in the first half of the year from the year prior, as revenue surged by 147 percent to 1.73 billion yuan.
Research and development expenses in the period jumped by 38 percent to 769 million yuan, accounting for over 40 percent of its total costs.
