Kingsoft Cloud lower after pricing stock offering in Hong Kong

Shares of Kingsoft Cloud (KC) trading in New York are down about 4% to $16.13 on Tuesday morning after the company earlier announced the pricing of its upsized HK$2.802B offering of 338M ordinary shares of the company at an offering price of HK$8.29 per placing share. The placing shares have been offered to non-U.S. persons in offshore transactions in reliance on Regulation S under the Securities Act of 1933, as amended. The company expects to close the placing on or before October 2, subject to the satisfaction of customary closing conditions. Morgan Stanley Asia Limited has been appointed as the placing agent. The company currently plans to use the net proceeds from the placing by December 31, 2028 in the following manners: 80% of the placing proceeds to support its AI business, including expand infrastructure and enhance cloud service capabilities, and 20% of the placing proceeds to replenish working capital and other corporate purposes, Kingsoft Cloud stated.