Kingsoft Cloud Hong Kong shares drop on discounted share sale

Kingsoft

17/04/2025 03:30

** Hong Kong shares of Kingsoft Cloud 3896.HK drop 8.9% to HK$5.82, their lowest since April 7, and on course for the third consecutive session of decline

** U.S.-listed stock KC.O plunged 16.8% on Wednesday

** Beijing-based cloud service provider sold 18.5 mln American depositary shares on Wednesday in its stock offering at $11.27 apiece for proceeds of $208.5 mln

** Offering priced at a 14.6% discount to stock's last close

** Controlling shareholder Kingsoft Corp 3888.HK agreed to purchase 69.38 mln Kingsoft Cloud shares in a private placement at HK$5.83 each, raising HK$404.5 mln ($52.11 mln)

** Proceed from the deals will be used for upgrading and expanding infrastructure, investments in technology and product development - Kingsoft Cloud

** Shares of Kingsoft Corp rise 2.3% to HK$36.15, snapping two straight sessions of fall

** Hang Seng Tech Index .HSTECH rises 1.6%, Hang Seng Index .HSI climbs 1.2%

** Kingsoft Cloud shares up 1.9% YTD

($1 = 7.7618 Hong Kong dollars)

 (Reporting by Donny Kwok)

 ((donny.kwok@thomsonreuters.com))