Biren announces $518 million share placement
AI general-purpose graphics processing unit (GPGPU) supplier Shanghai Biren Technology Co. Ltd. (6082.HK) on Thursday announced a new share placement to raise HK$4.04 billion ($518 million). Combined with a previous share sale in July that raised nearly HK$7.1 billion, the company has raised over HK$11 billion through secondary offerings in the 10 months since its IPO at the beginning of the year.
The latest transaction will see Biren sell 130 million new shares for HK$31.08 each, representing a 9.76% discount to its Wednesday closing price of HK$34.44. It plans to use 70% of the proceeds for supply chain procurement and manufacturing for its next-generation products, with 20% earmarked for R&D, and the rest designated for general working capital.
Biren went public in early January this year, selling its stock for HK$19.60 per share. The stock surged by more than two and a half times in its first six months, peaking at HK$70.75. But the shares have been retreating steadily since the first post-IPO placement in July, which was at HK$46.20 per share.
Shares of Biren opened flat on Thursday, but quickly moved lower and were down about 8.3% at HK$31.58 by the midday trading break. The stock is up 76% from its listing price in January.
By Lau Chi Hang
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