Biren Technology Shares Drop 12% Amid HK$4 Billion Placement

On Thursday, shares of Shanghai Biren Technology, a Hong Kong-listed AI chip manufacturer, plummeted over 12 percent after the company revealed plans for a share placement to raise HK$4 billion (US$510 million). This decline followed a stock exchange announcement late Wednesday, stating that the firm had engaged placing agents to issue 130 million new shares at HK$31.08 each, approximately 10 percent lower than the previous closing price of HK$34.44. The newly issued shares would account for around 5 percent of Biren's total shares as of Wednesday. During the trading session, the stock hit a low of HK$30.24, ultimately closing down 11.9 percent at HK$30.36. This marks Biren's second share placement since its January listing, following one in July, amid increasing competition from Chinese rivals to Nvidia.