CIG Shanghai plans to raise around US$840 million through a convertible-bond sale and share placement.

The edge computing and optical-module maker aims to raise 4.635 billion Hong Kong dollars, equivalent to US$590.5 million, via zero-coupon convertible bonds due 2027, it said Thursday.

The company plans to issue an aggregate principal amount of 3.96 billion yuan of bonds, equivalent to US$590.6 million. The bonds can be converted into Hong Kong-listed shares at an initial conversion price of HK$128.82, which represents a premium of around 13% to the stock's closing price on Wednesday.

CIG Shanghai also aims to raise HK$1.94 billion concurrently through the placement of 18.4 million H shares at HK$105.16 each. The placement price represents a discount of roughly 8.0% to the stock's last closing price.

The company aims to use net proceeds of US$832.6 million from the issuance and placement to enhance the production capacity of photonics products, aiming to distribute these across China, Malaysia, Mexico and the U.S.

It also plans to invest selectively in upstream enterprises using these proceeds. The remainder would be used for general corporate purposes and working capital.

CIG Shanghai's Hong Kong-listed shares rose 3.15% after the announcement, while its Shanghai-listed shares fell 0.4%.

Separately, Shanghai Biren Technology said Thursday that it is raising HK$4.02 billion in net proceeds from a placement of 130.0 million Hong Kong shares at HK$31.08 each. The general-purpose graphics processing unit developer aims use the proceeds for business expansion, research and development.