The Economic Information Daily reported on the 8th that Biren Technology (06082) is currently down 4.8%, trading at HK$32.80, marking its third consecutive day of decline with a cumulative drop of 10.9%. The stock has traded around 22.1 million shares, amounting to HK$736.5 million.
Biren Technology has launched a second capital raising in the secondary market. The company announced plans to place 130 million new shares to no fewer than six placing investors, representing approximately 4.76% of its enlarged issued share capital. The placement price is set at HK$31.08 per share, representing a discount of about 9.76% compared to the previous day's closing price of HK$34.44, raising net proceeds of approximately HK$4.02 billion.
Biren Technology had just passed the six-month IPO lock-up period in early July and immediately conducted its first placement, raising about HK$7 billion. At that time, the company signed a lock-up undertaking with placement agents, agreeing not to issue or sell any new shares within 90 days. With the lock-up period expiring in early October, Biren Technology has now swiftly initiated a new HK$4 billion placement plan.
*Proceeds from last placement expected to be mostly used up by early this year*
The company stated that approximately 70% of the net proceeds from this placement will be allocated towards strategic supply chain procurement, production preparation, and commercialization for next-generation products, expected to be fully utilized by the end of 2027; about 20% will be used to enhance R&D capabilities and software ecosystem development, expected to be fully expended by the end of 2029; the remaining approximately 10% will be used for working capital and general corporate purposes, expected to be fully utilized by the end of 2028.
The company noted that the next-generation product has completed initial testing and entered the post-tapeout verification phase, progressing faster than expected. Given strong demand for AI computing power and tight industry supply chains, the proceeds from the previous placement are expected to be largely deployed before the end of 2026, making this new placement a prudent and timely move, helping secure upstream capacity and shorten product time-to-market. Among these, the remaining funds from the previous placement allocated for accelerating commercialization and production of next-generation products—approximately HK$3.408 billion—are expected to be mostly, if not entirely, utilized by the end of this year, significantly earlier than the originally expected end of 2027.
Currently, the Hang Seng Index stands at 24,105, down 25 points or 0.1%, with main board turnover exceeding HK$11.7 billion. The Hang Seng China Enterprises Index is at 8,112, up 30 points or 0.4%. The Hang Seng Tech Index is at 4,199, up 5 points or 0.1%. (hc)
Biren Technology has launched a second capital raising in the secondary market. The company announced plans to place 130 million new shares to no fewer than six placing investors, representing approximately 4.76% of its enlarged issued share capital. The placement price is set at HK$31.08 per share, representing a discount of about 9.76% compared to the previous day's closing price of HK$34.44, raising net proceeds of approximately HK$4.02 billion.
Biren Technology had just passed the six-month IPO lock-up period in early July and immediately conducted its first placement, raising about HK$7 billion. At that time, the company signed a lock-up undertaking with placement agents, agreeing not to issue or sell any new shares within 90 days. With the lock-up period expiring in early October, Biren Technology has now swiftly initiated a new HK$4 billion placement plan.
*Proceeds from last placement expected to be mostly used up by early this year*
The company stated that approximately 70% of the net proceeds from this placement will be allocated towards strategic supply chain procurement, production preparation, and commercialization for next-generation products, expected to be fully utilized by the end of 2027; about 20% will be used to enhance R&D capabilities and software ecosystem development, expected to be fully expended by the end of 2029; the remaining approximately 10% will be used for working capital and general corporate purposes, expected to be fully utilized by the end of 2028.
The company noted that the next-generation product has completed initial testing and entered the post-tapeout verification phase, progressing faster than expected. Given strong demand for AI computing power and tight industry supply chains, the proceeds from the previous placement are expected to be largely deployed before the end of 2026, making this new placement a prudent and timely move, helping secure upstream capacity and shorten product time-to-market. Among these, the remaining funds from the previous placement allocated for accelerating commercialization and production of next-generation products—approximately HK$3.408 billion—are expected to be mostly, if not entirely, utilized by the end of this year, significantly earlier than the originally expected end of 2027.
Currently, the Hang Seng Index stands at 24,105, down 25 points or 0.1%, with main board turnover exceeding HK$11.7 billion. The Hang Seng China Enterprises Index is at 8,112, up 30 points or 0.4%. The Hang Seng Tech Index is at 4,199, up 5 points or 0.1%. (hc)
