SenseTime (HKG:0020) completed the placement of nearly 1.67 billion shares at HK$1.50 apiece to a firm owned by Infini Capital Management, a late Thursday Hong Kong bourse filing said.

Shares of the artificial intelligence company were down 3% in Friday afternoon trading.

The shares represent around 4.38% of the firm's issued class B shares and 4.31% of its total issued share capital as enlarged by the issue.

The firm will use proceeds from the issue to develop its core business, including building an AI Cloud, expanding the scale of its AI infrastructure SenseCore, and boosting the R&D of generative AI.