BRIEF: Kingsoft Cloud raises $359 million to support AI expansion

Cloud computing services provider Kingsoft Cloud Holdings Ltd. (3896.HK; KC.US) said on Wednesday it placed 338 million new shares at HK$8.29 apiece to raise HK$2.8 billion ($359 million)

The offer price represents an 8.8% discount to Tuesday’s closing price of HK$9.09, and the placed shares account for 7.46% of the company’s enlarged issued share capital.

Kingsoft Cloud said it will use 80% of the placement proceeds to support its artificial intelligence (AI) initiatives, including expanding related infrastructure and enhancing its cloud service capabilities. It will use the remaining 20% to supplement its operating capital and for other corporate purposes.

Shares of Kingsoft Cloud opened down 5.4% at HK$8.60 on Wednesday. The stock is up 6.5 times over the last 52 weeks.

By Lau Chi Hang

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