BRIEF: Black Sesame to raise $160 million through share placement

Intelligent driving technology company Black Sesame International Holding Ltd. (2533.HK) said on Wednesday it will raise about HK$1.24 billion ($159 million) through a new share placement, becoming the latest Chinese tech company to capitalize on a recent wave of positive sentiment towards the group.

Black Sesame said it will sell 53.65 million shares, or 8.55% of its expanded share capital, at a placement price of HK$23.20, according to its announcement. The placement price represents an 11.8% discount to the stock’s last closing price before the announcement, but is roughly equal to its average trading price over the last five trading days. Black Sesame’s shares rose 3.2% on Wednesday to close at HK$27.15.

The company is the latest to take advantage of positive investor sentiment towards Chinese tech stocks to raise new cash. Other companies to similarly raise new funds include telecoms software maker Comba (2342.HK), intelligent driving technology firm iMotion (1274.HK) and AI drug-making services provider XtalPi (2228.HK).

By Doug Young

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