Z.AI launched the sales on Friday, offering 21.97 million new Hong Kong shares at HK$714 ($91.05) each, a 10% discount to Friday’s closing price of HK$793.
The company also raised 20.14 billion yuan ($3 billion) of zero-coupon bonds due in September 2027, the filing showed. The yuan-denominated bonds will be settled in U.S. dollars.
The bonds were issued at 100.5% of their face value, the filing showed. The initial conversion price is HK$892.50, a 25% premium to the HK$714 share placement price.
Z.AI can redeem all, but not part, of the bonds from February 18, 2027, if its shares trade at or above 130% of the conversion price for 20 out of 30 trading days, according to the sheet.
About 60% of the net proceeds will be used for research and development of the company’s next-generation models and its fully self-training system, Z.AI said in the filing.
Another 15% of the proceeds will be for the company’s expansion plans while the rest will be used to optimize its capital structure, replenish working capital for daily operations and for other general corporate purposes, according to the filing.
The fundraising comes as Chinese AI developers seek capital for the costly computing infrastructure and talent needed to compete with larger U.S. rivals.
Z.AI, formerly known as Zhipu AI, went public in Hong Kong in January and raised about $4 billion in a follow-on share sale in July.
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