Chip Photo: VCG

China's artificial intelligence (AI) chipmaker Cambricon on Tuesday evening announced on its official website that it had recently received approval from the China Securities Regulatory Commission (CSRC) for its application to issue shares to specific investors. The approval, valid for 12 months, allows the company to proceed with the private placement.

The company said it will carry out the share issuance in accordance with relevant laws, regulations and the approval requirements within the stipulated period, while fulfilling its information disclosure obligations in a timely manner.

On May 1, Cambricon disclosed a private placement plan targeting specific investors on the Shanghai Stock Exchange, under which it planned to raise no more than 4.98 billion yuan ($698 million) to fund a chip platform project for large language models, a software platform project for large language models, and to replenish working capital.

On July 18, the company revised the plan. According to the amended proposal on its official website, the total funds to be raised will not exceed 3.985 billion yuan, including expenses, with the net proceeds earmarked for the same chip platform, software platform and working capital purposes.

At the close of trading today, Cambricon's shares ended at 1,228.07 yuan each, giving the company a market capitalization of 513.8 billion yuan.

Global Times