Z.AI raises $5 billion through shares and convertible bonds
Hong Kong-listed AI company Z.AI announced a fundraising of approximately $5 billion, combining the sale of new H-shares and zero-coupon convertible bonds. The firm plans to issue around 21.97 million new shares at HK$714 each, generating about HK$15.7 billion (US$2 billion). Additionally, Z.AI will offer convertible bonds worth 20.14 billion yuan ($3 billion), which can be converted into roughly 26.37 million shares at a conversion price of HK$892.50 per share. The fundraising aims to support the company's expansion in computing capacity and development of next-generation language models, driven by rising demand for AI services. This capital raise follows an earlier $4 billion funding round from July 2026 after lock-up periods expired on previous placements. Z.AI competes with global firms like OpenAI and Anthropic as well as domestic rivals such as DeepSeek and Moonshot AI. The move reflects broader trends in China's AI sector, where companies are increasing investments to match international competitors.
Topics: AI convertible bonds equity issuance fundraising Hong Kong stock market