SenseTime Group Inc. (SENSETIME-W) signed a placing agreement on 16 April 2026 to issue 1.70 billion new Class B shares at HK$1.91 each through The Hongkong and Shanghai Banking Corporation Limited acting as sole placing agent. The deal will be executed on a best-efforts basis to not fewer than six independent placees.
The new shares equal 4.26 % of the company’s existing Class B share base and 4.21 % of total issued shares. Post-placement, the enlarged share capital will rise from 40.42 billion to 42.12 billion shares, with the new shares representing 4.04 % of the total.
Pricing represents an 8.61 % discount to the 16 April closing price (HK$2.09), a 5.45 % discount to the five-day average (HK$2.02) and a 6.83 % discount to the 30-day average (HK$2.05). Gross proceeds are expected to be approximately HK$3.25 billion; net proceeds after fees and expenses are estimated at HK$3.23 billion, implying a net issue price of about HK$1.90 per share.
Proceeds allocation: • 40 % to expand the SenseCore AI infrastructure, including domestic AI supercomputing clusters and cloud stack optimisation. • 30 % to R&D for Generative AI—particularly the SenseNova multimodal large-model series—and commercialisation of an AI token plan. • 20 % to integrate AI into verticals such as education, SaaS and embedded hardware. • 10 % for general working capital.
The shares will be issued under the existing general mandate approved on 26 June 2025, which still allows for up to 3.98 billion additional Class B shares after accounting for previous issuances. No further shareholder approval is required.
Completion is subject to customary conditions, including Stock Exchange listing approval and the absence of material adverse events. The company has agreed to a 90-day lock-up on further equity issuance, excluding share-incentive schemes.
SenseTime expects the placement to strengthen its balance sheet and support continued investment in AI infrastructure and product development. An application for listing of the new shares will be filed with the Hong Kong Stock Exchange. Shareholders are advised that the placement may not proceed if conditions are not met.
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