(Yicai) Dec. 12 -- SenseTime Group revealed plans for its second share placement in six months, aiming to raise over HKD2.8 billion (USD359 million). The proceeds will go to advancing its core AI cloud services, scaling its large-scale AI infrastructure, and supporting its generative AI push.

The Chinese artificial intelligence developer will issue nearly 1.87 billion shares at HKD1.50 apiece to at least six investors, it announced yesterday. That represents a 6.3 percent discount on the HKD1.60 closing price of its Hong Kong-traded Class-B shares on Dec. 10.

The Shanghai-based company’s shares [HKG: 0020] closed down 1.3 percent at HKD1.56 (20 US cents) apiece today, while the benchmark Hang Seng Index rose 1.2 percent. SenseTime has gained almost 35 percent since the end of last year.

On June 27, SenseTime said it had issued an additional 1.67 billion Class-B shares at HKD1.20 each, raising nearly HKD2 billion. That has already been used to beef up the company’s AI infrastructure and support GenAI development, yesterday’s statement added.

SenseTime announced earlier this month that it had completed a strategic restructuring begun in October that shifted its focus to GenAI. The new structure, known as ‘1 + X,’ has a core business (1) focused on AI cloud services and GenAI models, and ecosystem businesses (X), which include smart vehicles, home robotics, smart healthcare, and smart retail.

The core business will aim to achieve profitability and stable cash flow, while each of the ecosystem businesses, which will have their own independent CEOs, will cater to specific market needs, Yicai learned from an internal memo that Chairman and Chief Executive Xu Lu sent to staff.

Editor: Futura Costaglione