Hong Kong Exchanges and Clearing said Biren Technology is placing 130 million new H shares at HK$31.08 each. According to Sina Finance, the gross proceeds from the placement will total HK$4.04 billion.

The placement shares will account for about 4.76% of the enlarged total issued share capital after the offering. The placement price represents a 9.76% discount to the previous close of HK$34.44 per share.

About 70% of the net proceeds are intended for strategic supply-chain purchases, production preparation, and commercialization of the company’s next-generation products. About 20% will be used to enhance research and development capabilities and the software ecosystem, while about 10% will go toward working capital and general corporate purposes. CICC and UBS are acting as overall coordinators and placement agents.