Auto-driving chipmaker Horizon eyes US$815 million in share placement

Horizon Robotics, a maker of artificial-intelligence chips that power autonomous-driving systems, plans to rake in HK$6.34 billion (US$815 million) from a top-up share placement, its second such refinancing in three months, as the company capitalises on tech euphoria to fund its expansion.

The Beijing-based company planned to sell 639 million existing shares held by major shareholders to at least six investors for HK$9.99 each, representing a 5.75 per cent discount to its closing price on Thursday, Horizon said in a filing with the Hong Kong stock exchange on Friday. The proceeds would be used to expand in overseas markets, for research and development, and to invest in emerging sectors such as robotaxi initiatives and upstream and downstream business partners, it said.

The placement represented an opportunity to raise capital while broadening the shareholder base, Horizon said.

In a top-up placement, major shareholders first sell their existing shares and then subscribe to new ones as a replacement, allowing companies to raise funds quickly.

The placement adds to a similar one in June, when Horizon raised HK$4.67 billion from selling existing stocks to no less than six outside investors. Horizon’s refinancing spree coincides with a global frenzy over AI, which has helped propel the Nasdaq market to a record high and the Hang Seng Tech Index to near a four-year high. Alibaba Group Holding, owner of the Post, said this week that it would boost its US$53 billion expenditure on AI infrastructure to ride the industry trend.

Horizon’s shares slumped 6.4 per cent to HK$9.92 in Hong Kong on Friday. The stock has jumped 175 per cent this year.

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