Fundraising plan: Fourth Paradigm seeks to secure $107 million through share offering
In a significant move, Fourth Paradigm Technology Co. Ltd, a company operating in the infrastructure/resources sector, has raised approximately HK$1.31 billion (about $107 million USD) through a share placement. This funding round, which was subscribed by Infini Global Master Fund, involved the issuance of 25.9 million shares, representing 8.07% of the enlarged share capital for its Hong Kong-listed H-shares and 4.98% of its total enlarged share capital.
The placement price of the shares was set at HK$50.50. On Thursday, Fourth Paradigm's shares opened higher and closed at HK$56.55 by the midday break, up 1.98%.
The purpose of this fundraising and the allocation of net proceeds, which amounts to approximately HK$1.306 billion after fees, is multi-faceted. Half of the funds will be invested in research and development (R&D) targeting emerging technological fields, such as embodied intelligence, smart devices, blockchain, real-world assets (RWA), and stablecoins integrated with holistic AI capabilities. This move reinforces the company's commitment to advancing cutting-edge technologies.
Another 40% will support global business expansion and potential acquisitions in these same emerging technological sectors. This includes expanding marketing channels, enhancing brand influence in overseas markets, exploring business synergies, and monitoring opportunities for high-quality mergers and acquisitions to accelerate growth and increase industry competitiveness.
The remaining 10% will be used for general corporate purposes to strengthen the financial position and support ongoing operations and strategic initiatives.
The company views this share placement as a strategic step to broaden its shareholder and capital base, strengthen its financial position, and facilitate long-term growth and high-quality development in its AI-driven technology sectors.
Infini Capital Management Ltd., headquartered in both Hong Kong and Abu Dhabi, manages the Infini Global Master Fund, the subscriber of the share placement.
This news comes as a testament to Fourth Paradigm's commitment to innovation and growth in the AI and related emerging technology sectors. For readers interested in staying updated on such developments, FastNewsAi offers a weekly free newsletter.
Fourth Paradigm Technology Co. Ltd plans to utilize half of the raised funds, approximately HK$653 million, in research and development (R&D) focused on technology fields such as artificial-intelligence, embodied intelligence, smart devices, blockchain, real-world assets (RWA), and stablecoins. Additionally, the company will invest another 40% of the funds, around HK$525 million, in global business expansion and potential acquisitions in these same emerging technological sectors, including marketing channels, overseas market influence, business synergies, and high-quality mergers and acquisitions.
