Shanghai-based AI-chip specialist Iluvatar CoreX has signed a placing agreement with Goldman Sachs (Asia), Morgan Stanley Asia, Huatai Financial and J.P. Morgan Securities to issue up to 14.86 million new H shares at HK$476.00 each. The deal, announced before Hong Kong trading hours on 9 July 2026, will be executed on a best-efforts basis to at least six institutional investors.
The offer price represents a 15.00% discount to the 8 July closing price of HK$560.00 and a 19.42% discount to the five-day average of HK$590.70. If fully placed, the transaction will raise gross proceeds of about HK$7.07 billion and net proceeds of roughly HK$7.03 billion, implying a net issue price of HK$473.41 per share.
The 14.86 million new shares equal 6.06% of Iluvatar CoreX’s outstanding H-share capital and 5.84% of total shares pre-issue, diluting existing shareholders to 5.52% of the enlarged share base of 269.17 million shares. Placees are expected to remain below the substantial-shareholder threshold. The placement will use 29.21% of the company’s 20% general mandate approved at the June 2026 AGM; no further shareholder vote is required.
Use of proceeds (target completion by end-2027): • 60% (HK$4.22 billion): strategic procurement and supply-chain resilience for critical components. • 15% (HK$1.06 billion): accelerated iteration of current GPGPU products and R&D for next-generation chips. • 10% (HK$703.35 million): expansion of full-stack software platforms, developer ecosystem and industry-specific AI solutions. • 10% (HK$703.35 million): selective strategic investments and acquisitions. • 5% (HK$351.70 million): working capital and general corporate purposes.
Completion, slated for 13 July 2026, is conditional on Hong Kong listing approval, PRC regulatory clearances and customary market-out clauses. The company has agreed to a 90-day lock-up on further equity issuance, excluding the current placement and any H-share awards under its existing scheme.
Iluvatar CoreX raised HK$3.51 billion from its January 2026 Hong Kong IPO, with HK$2.47 billion of those funds unspent as of 31 May 2026. Management cites surging domestic demand for AI computing and heightened supply-chain requirements as drivers for the additional capital raise.