FundraiseSep 11, 2026, 13:47 UTC

Z.AI launches $5B Hong Kong raise, among China's biggest AI post-IPO deals

What's the deal? Beijing-based AI developer Z.AI has launched a $5 billion fundraise in Hong Kong, splitting it into a $2 billion share placement and a $3 billion convertible bond sale, according to term sheets seen by Reuters.

The company is offering 21.97 million new shares at HK$714 each, a 10% discount to Friday's HK$793 closing price. It is also selling 20.14 billion yuan ($3 billion) of zero-coupon bonds due September 2027, denominated in yuan but settled in US dollars.

Why now? Chinese AI developers are racing to secure capital for the costly computing infrastructure and talent needed to compete with larger US rivals. The bonds carry a yield ranging from negative 0.5% to zero, a sign of strong investor demand.

What's the endgame? Z.AI, formerly Zhipu AI, plans to use proceeds for research and development, computing resources and infrastructure. Funds will also go toward expansion, strategic investments, potential acquisitions and working capital.

The share placement and bond sale run concurrently but are not dependent on each other closing. CICC is sole global coordinator and joint bookrunner with Guotai Junan Securities (Hong Kong).

By the numbers: This is one of the largest post-IPO equity raises ever by an enterprise software company in China, ranking in the top percentile across a sample of 130 comparable rounds. Z.AI listed in Hong Kong in January and raised about $4 billion in a follow-on share sale in July.

The signal: The raise underscores how quickly China's AI contenders are tapping public markets to fund their ambitions. Rival MiniMax also listed in Hong Kong this year, while Moonshot and DeepSeek are pursuing listings in Hong Kong and Shanghai, respectively — a wave of capital-raising as the sector's compute costs climb.