XTALPI Holdings Ltd (02228) saw its stock price soar by 5.17% in intraday trading on Friday, following the company's announcement of a significant share placement plan. Before trading hours, XTALPI entered into a placing agreement with agents to offer up to approximately 286 million shares at HK$9.28 per share.

The company expects to raise net proceeds of approximately HK$2.63 billion, assuming full subscription of the placing shares. XTALPI intends to use these funds for various strategic initiatives, including continuous product iteration and upgrades to enhance research and development capabilities, product commercialization and business development, potential acquisitions and investments, talent attraction, and working capital supplementation. This move is aimed at strengthening the company's position in the AI-driven drug discovery market and expanding its scale and market share.

The share placement news comes on the heels of XTALPI's recent positive profit alert for the interim period ending 2025. The company expects to report consolidated revenue of no less than RMB 500 million, representing a year-on-year increase of at least 387%. Moreover, XTALPI anticipates achieving its first semi-annual profitability, with a net profit of no less than RMB 50 million and an adjusted net profit of no less than RMB 120 million. This improved financial outlook is largely attributed to the company's collaboration with DoveTree Medicines LLC, leveraging XTALPI's end-to-end artificial intelligence drug discovery platform.