Chinese AI chip designer Cambricon Technologies Corp. Ltd. has received regulatory approval to proceed with a scaled-down private share placement, following a remarkable 500% rally in its share price over the past year, reports Caixin. The China Securities Regulatory Commission approved the plan, Cambricon said in a Tuesday filing to the Shanghai Stock Exchange. While pricing details were not disclosed, the market is closely watching how the company will value the offering amid its meteoric stock rise.
The approval permits Cambricon to issue up to 20.92 million shares over the next 12 months to no more than 35 selected investors, raising as much as RMB 3.985 billion ($559 million). The proceeds will support development of large-model chips and software, a strategic priority as China accelerates efforts to reduce reliance on foreign technologies.
This is Cambricon’s second private placement since its 2020 initial public offering. The company previously raised RMB 1.672 billion in April 2023. The final offering price will be set through a bidding process, with a floor price at 80% of the average trading price in the 20 days preceding the issuance, said the company.