Z.ai Shares Drop 10% After $5 Billion Raise, Its Second in 2 Months
Updated
Updated · CNBC · Sep 14
Z.ai Shares Drop 10% After $5 Billion Raise, Its Second in 2 Months
3 articles · Updated · CNBC · Sep 14
Summary
More than 10% of Z.ai’s market value was wiped out Monday after the Chinese AI company unveiled a roughly $5 billion fundraising plan.
HK$15.68 billion will come from selling up to 21.97 million new shares at HK$714—10% below Friday’s close—while 20.14 billion yuan of zero-coupon 2027 convertible bonds will add about $3 billion.
Z.ai said the proceeds will fund next-generation AI models, including R&D, training and inference infrastructure, and commercialization.
The deal follows a roughly $4 billion share placement in July and comes a month after Z.ai’s stock jumped on a new model it said runs entirely on Chinese-made chips using 100,000 domestic chips.
MiniMax shares also fell about 5%, suggesting the fundraising weighed on sentiment across China’s AI sector.