KINGSOFT CLOUD (03896) plans to issue American Depositary Shares and common stock to raise over HK$2 billion.

KINGSOFT CLOUD (03896) announced on April 16, 2025, that the company has entered into an underwriting agreement with underwriters. Under this agreement, the company agrees to (i) issue and sell a total of 17 million fixed American depository shares at $11.27 per share (representing a total of 2.595 billion related shares valued at $25.95 million); and (ii) issue and sell a total of 18 million shares at HK$5.83 per share to underwriters with a total value of $18 million. The announcement also stated that the company has granted underwriters a 30-day option to purchase up to 2.775 million additional shares of newly issued American depository shares at $11.27 per share (representing a total of 416.25 million related shares valued at $41,625). On the same day, the company entered into a subscription agreement with subscribers (the company's controlling shareholder KINGSOFT), to issue 69.375 million new shares at a subscription price of HK$5.83 per share. The total expected proceeds from the issuance of fixed American depository shares and additional American depository shares are estimated to be approximately HK$1.512 billion (assuming options are not exercised) to HK$1.755 billion (assuming all options are exercised). The expected proceeds from the issuance of sale shares are approximately HK$105 million, and the expected proceeds from the issuance of subscription shares are approximately HK$404 million. The announcement stated that the company intends to use the estimated net proceeds from the sale and subscription for investments in upgrading and expanding infrastructure, investing in technology and product development, and for general corporate and operational purposes.