By Chris Wack
Kingsoft Cloud Holdings shares were down 15%, to $11.16, after the company said its underwritten public offering of 18.5 million American depositary shares priced at $11.27 per ADS.
All ADSs will be offered by Kingsoft Cloud. Investors have an option to receive ordinary shares of the company to be traded on the Hong Kong Stock Exchange in lieu of ADSs in this offering.
The China-based technology company has granted the underwriters a 30-day option to buy up to an additional 2.78 million ADSs at the public offering price.
Concurrently with the completion of the offering, the company's existing shareholder, Kingsoft Corp Limited has agreed to purchase 69.4 million ordinary shares from Kingsoft Cloud.
The proceeds to Kingsoft Cloud from the public offering and concurrent private placement are expected to be $260.7 million.
The company plans to use the proceeds for investments in upgrading and expanding infrastructure, investments in technology and product development, and general corporate and working capital purposes.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
April 16, 2025 10:22 ET (14:22 GMT)
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