Kingsoft Cloud prices upsized HK$2.8 billion share offering

BEIJING - Kingsoft Cloud Holdings Limited (NASDAQ:KC and HKEX:3896) has priced its upsized offering of 338 million ordinary shares at HK$8.29 per share, raising approximately HK$2.8 billion (US$359 million), according to a press release statement issued Tuesday. The capital raise comes as InvestingPro data shows the company has been rapidly burning through cash, with a market capitalization of $26.2 million and revenue growth of ~14% in the last twelve months.

The Chinese cloud service provider expects to close the transaction on or before October 2, 2025, subject to customary closing conditions. Morgan Stanley Asia Limited is serving as the placing agent for the offering.

The company plans to allocate 80% of the net proceeds to support its artificial intelligence business, including expanding infrastructure and enhancing cloud service capabilities. The remaining 20% will be used to replenish working capital and for other corporate purposes. Kingsoft Cloud intends to deploy these funds by December 31, 2028.

The shares are being offered to non-U.S. persons in offshore transactions in reliance on Regulation S under the Securities Act of 1933. The shares have not been registered under the Securities Act or any state securities laws and will not be offered to members of the public in Hong Kong.

Kingsoft Cloud operates as a cloud service provider in China, offering cloud infrastructure, cloud-native products, and industry-specific solutions to customers in strategically selected vertical markets.

The transaction represents a significant capital raise for the company as it seeks to strengthen its position in the competitive cloud services market and expand its AI capabilities. InvestingPro analysis reveals several additional key metrics and insights about Kingsoft Cloud’s financial health. Subscribers can access over 30 financial metrics and expert analysis to make informed investment decisions.

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