Kingsoft Cloud Announces Pricing of Upsized HK$2,802 Million Offering of New Shares

Rhea-AI Summary

Kingsoft Cloud (NASDAQ: KC, HKEX: 3896) has announced the pricing of its upsized offering of 338,000,000 ordinary shares at HK$8.29 per share, totaling HK$2,802 million. The offering is exclusively available to non-U.S. persons in offshore transactions under Regulation S.

The company plans to allocate 80% of the proceeds to support its AI business expansion and cloud service capabilities, with the remaining 20% designated for working capital and corporate purposes. The placement is expected to close by October 2, 2025, with Morgan Stanley Asia Limited serving as the placing agent.

Positive

• Significant capital raise of HK$2,802 million to strengthen financial position
• 80% of proceeds allocated to AI business expansion and cloud infrastructure
• Strategic investment in cloud service capabilities enhancement

Negative

• Potential dilution for existing shareholders due to large share offering
• Share issuance may put downward pressure on stock price

Insights

Capital Markets Analyst

Kingsoft Cloud's HK$2.8B share offering strengthens AI investment capacity while diluting existing shareholders, signaling strategic pivot toward AI capabilities.

Kingsoft Cloud has priced an upsized offering of 338 million ordinary shares at HK$8.29 per share, raising approximately HK$2.802 billion. This significant capital raise is strategically allocated with 80% directed toward AI infrastructure and enhanced cloud capabilities, with the remaining 20% for working capital and general corporate purposes.

The timing and structure of this placement are notable - offered exclusively to non-U.S. persons through offshore transactions under Regulation S, avoiding the complexities of U.S. securities registration. Morgan Stanley's appointment as placing agent lends credibility to the transaction, though the expected closing by October 2nd remains subject to customary conditions.

What's particularly telling is Kingsoft's extended deployment timeline through December 2028, indicating a methodical, long-term approach to AI integration rather than a reactive market play. This substantial capital injection provides Kingsoft with necessary resources to compete in China's intensifying cloud services market, where AI capabilities increasingly determine competitive positioning.

While this offering strengthens Kingsoft's balance sheet and positions it for AI-driven growth, it simultaneously represents meaningful shareholder dilution through the issuance of new shares. The market's ultimate verdict will depend on management's execution of their AI strategy and whether the increased investment translates to proportional revenue growth and market share gains in China's competitive cloud services landscape.

BEIJING, Sept. 23, 2025 /PRNewswire/ -- Kingsoft Cloud Holdings Limited ("Kingsoft Cloud" or the "Company") (NASDAQ: KC and HKEX: 3896), a leading cloud service provider in China, today announced the pricing of its upsized HK$2,802 million offering of 338,000,000 ordinary shares of the Company (the "Placing Shares"), at an offering price of HK$8.29 per Placing Share (the "Placing"). The Placing Shares have been offered to non-U.S. persons in offshore transactions in reliance on Regulation S under the Securities Act of 1933, as amended (the "Securities Act"). The Company expects to close the Placing on or before October 2, 2025 (the "Closing Date"), subject to the satisfaction of customary closing conditions.

Morgan Stanley Asia Limited has been appointed as the placing agent.

The Company currently plans to use the net proceeds from the Placing (the "Placing Proceeds") by December 31, 2028 in the following manners: (i) 80% of the Placing Proceeds to support our AI business, including expand infrastructure and enhance cloud service capabilities, and (ii) 20% of the Placing Proceeds to replenish working capital and other corporate purposes.

The Placing Shares have not been and will not be registered under the Securities Act or any state securities laws or be registered in Hong Kong or elsewhere. They may not be offered or sold in the United States or to U.S. persons (as defined in Regulation S under the Securities Act) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. They will not be offered to any members of the "public" (within the meaning of the Companies (Winding Up and Miscellaneous Provisions) Ordinance, Chapter 32 of the Laws of Hong Kong).

This press release shall not constitute an offer to sell or a solicitation of an offer to purchase any securities, in the United States, Hong Kong or elsewhere, and shall not constitute an offer, solicitation or sale of the securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.

This press release contains information about the pending Placing, and there can be no assurance that the Placing will be completed.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "likely to", "could", "potential" or other similar expressions. Kingsoft Cloud may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Kingsoft Cloud's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Kingsoft Cloud's goals and strategies; Kingsoft Cloud's future business development, results of operations and financial condition; relevant government policies and regulations relating to Kingsoft Cloud's business and industry; the expected growth of the cloud service market in China; Kingsoft Cloud's ability to monetize its customer base; general economic and business conditions in China and globally; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Kingsoft Cloud's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Kingsoft Cloud does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

About Kingsoft Cloud Holdings Limited

Kingsoft Cloud Holdings Limited (NASDAQ: KC and HKEX:3896) is a leading cloud service provider in China. With extensive cloud infrastructure, cutting-edge cloud-native products based on vigorous cloud technology research and development capabilities, well-architected industry-specific solutions and end-to-end fulfillment and deployment, Kingsoft Cloud offers comprehensive, reliable and trusted cloud service to customers in strategically selected verticals.

For more information, please visit: http://ir.ksyun.com.

For investor and media inquiries, please contact:

Kingsoft Cloud Holdings Limited
Nicole Shan
Tel: +86 (10) 6292-7777 Ext. 6300
Email: ksc-ir@kingsoft.com

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SOURCE Kingsoft Cloud Holdings Limited

FAQ

How much money is Kingsoft Cloud (KC) raising in its latest share offering?

Kingsoft Cloud is raising HK$2,802 million through an offering of 338,000,000 ordinary shares priced at HK$8.29 per share.

What is the price per share for Kingsoft Cloud's (KC) September 2025 offering?

The offering price is set at HK$8.29 per share for the Placing Shares.

How will Kingsoft Cloud (KC) use the proceeds from its HK$2,802 million offering?

Kingsoft Cloud will use 80% of proceeds to support its AI business and enhance cloud service capabilities, and 20% for working capital and corporate purposes.

When will Kingsoft Cloud's (KC) September 2025 share offering close?

The offering is expected to close on or before October 2, 2025, subject to customary closing conditions.

Who can participate in Kingsoft Cloud's (KC) HK$2,802 million share offering?

The offering is available exclusively to non-U.S. persons in offshore transactions under Regulation S of the Securities Act.