Nuobikan seeks $17 million in share placement at 13.6% discount

AI technology company Nuobikan Artificial Intelligence Technology (Chengdu) Co. Ltd. (2635.HK) said on Tuesday it plans to place 16.49 million new shares, representing about 4.17% of its enlarged share capital. The placement price of HK$8.19 per share represents a 13.61% discount to Monday’s closing price of HK$9.48. The company expects to raise net proceeds of HK$131 million ($17 million).

Nuobikan plans to use 40% of the proceeds to develop AI operations and maintenance technology for large infrastructure projects, including railways, petrochemical facilities and airports. It will use another 20% for overseas expansion, 20% for potential acquisitions and the remaining 20% for working capital.

Nuobikan listed last December at HK$80 per share, raising net proceeds of about HK$257 million. It had used about HK$160 million of that by the end of August, leaving about HK$97 million unspent.

It made a 10-for-1 share split in March and was included in the Hong Kong Stock Connect program in April, making its stock accessible to Mainland-based investors. Its shares subsequently climbed as high as HK$83.20 on a post-split basis, more than 10 times the split-adjusted IPO price, before falling sharply. The stock is now down nearly 90% from that peak. It opened lower Tuesday and traded at HK$8.75 by the midday break, down 7.7% and hitting a new 52-week low.

By Lee Shih Ta

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