AI company Zhipu has launched a Hong Kong share placement worth about $2 billion alongside roughly $3 billion of zero-coupon convertible bonds, targeting combined financing of about $5 billion. Zhipu will issue 21.97 million new shares at HK$714 each, about 10% below its September 11 closing price of HK$793. The bonds total RMB 20.14 billion, or about $3 billion, are denominated in yuan but settled in U.S. dollars, and mature in September 2027. They are priced at 100% to 100.5% of face value, implying a yield of negative 0.5% to 0%, with an initial conversion price of HK$892.50, a 25% premium to the placement price. Zhipu may redeem all the bonds from Feb. 18, 2027, if its shares reach at least 130% of the conversion price on 20 of 30 consecutive trading days. The offerings are being conducted simultaneously but are not dependent on each other. Proceeds will fund research and development, computing resources and related infrastructure, as well as expansion, strategic investments, potential acquisitions, working capital and other general corporate purposes.