Chinese AI chipmaker Biren weighs US$1b share placement: Bloomberg

Chinese artificial intelligence chip provider Shanghai Biren Technology (6082) considered US$1 billion (HK$7.8 billion) share sale to fund its AI development, two months after raising nearly HK$7.07 billion in its first placement, Bloomberg reported on Tuesday, citing people familiar with the matter.

Banks are in the early stage of sounding out investor interest in this potential share sale, the report said.

The discussion is ongoing, and details like the placement amount and structure are still not finalized, according to the report.

The company, one of China's "four little GPU dragons", has raised HK$7.07 million via 153 million new H shares at HK$46.2 each in July, aiming to finance accelerated market adoption, expansion of pre-research programs and greater near-term commercialization and supply chain commitments for next-generation products. 

Biren agreed not to sell any shares in the next 90 days following the first placement, while the lock-up period will end at the start of October, when it may process a new round of share sales, the report said.

This came as a wave of Chinese AI firms raise funds to accelerate development to compete with global rivals. On Sunday, Chinese AI lab Z.AI (2513) said it raised a total of HK$39 billion from a Hong Kong share placement and a concurrent convertible bond sale, sending its shares to slump 9 percent the next day. 

Biren's shares have dropped around 7 percent since its listing in January.

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