Kingsoft Cloud Holdings Limited (NASDAQ:KC) shares declined 3.9% on Tuesday after the Chinese cloud provider announced the pricing for an upsized share placement totaling HK$2.802 billion (around $359 million).
The company set the price for 338 million ordinary shares at HK$8.29 each, offering them to non-U.S. investors through offshore transactions. The placement, conducted under Regulation S of the U.S. Securities Act of 1933, is expected to close on or before October 2, 2025, subject to standard closing conditions.
Morgan Stanley Asia Limited is acting as the placing agent for the transaction. Kingsoft Cloud plans to allocate 80% of the proceeds to expand its artificial intelligence business, including strengthening infrastructure and enhancing cloud service capabilities, while the remaining 20% will be used to replenish working capital and support other corporate purposes.
The company stated that it intends to deploy the net proceeds from the offering by December 31, 2028. With this move, Kingsoft Cloud aims to bolster its presence in China’s competitive cloud services market, with a particular emphasis on developing AI technologies.
Shares reacted negatively to the potential dilutive effect of the new issuance, despite the company’s focus on investing in growth initiatives.
Kingsoft Cloud Holdings stock price
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