Chinese AI drug discovery firm XtalPi to raise $2.87 billion from zero coupon convertible bonds

Chinese AI drug discovery company XtalPi (2228) said it plans to issue zero coupon convertible bonds to raise HK$2.87 billion. 

The bonds due 2027 have an initial conversion price of HK$13.85 per share, representing a 20 percent premium over the closing price on Wednesday.

Assuming full conversion of the bonds, the bonds will be convertible into approximately 206.9 million shares, accounting for approximately 4.59 percent of the enlarged total issued share capital, according to a filing on Thursday. 

The group plans to apply such net proceeds to enhance its domestic and international research and development capabilities and one-stop-solution provision capabilities, enhance domestic and international commercialization capabilities and expand business development and marketing teams, expand domestic and international delivering and research and development capabilities through site construction, and for working capital and general corporate purposes.