SenseTime, one of China’s leading artificial intelligence (AI) companies, is looking to raise HK$2 billion ($260 million) from a stock placement, in an attempt to scale up the company’s AI infrastructure, reports the South China Morning Post. The company plans to issue 1.67 billion new shares valued at HK$1.20 each. No shareholder approval is required as the placement is being made under a previously approved mandate.
SenseTime, which principally engages in the sale of AI software, hardware and related services, hired Guotai Junan International and Huatai International to arrange the transaction. Net proceeds after the placing commission and other costs will be HK$1.99 billion.
The proceeds from the placement will be used mainly for further enhancing the scale of the company’s industry AI infrastructure – SenseCore, supporting the further development of generative AI including large model research and product development, and for the purpose of general working capital of the company, it said.