KINGSOFT CLOUD(US:KC) Sou Hu Cai Jing·2025-04-17 06:40Core Viewpoint - Kingsoft Cloud (NASDAQ: KC, HKEX: 3896) announced an underwriting agreement for the issuance of American Depositary Shares (ADS) and shares, aiming to raise between $195 million and $226 million, depending on the exercise of the over-allotment option [3][6]. Group 1: Issuance Details - The company will issue a total of 17,300,000 ADS at a fixed price of $11.27 per ADS, representing a total value of $259.5 million [3]. - Additionally, 18,000,000 shares will be issued at a price of HKD 5.83 per share, totaling $18,000 [3][4]. - An over-allotment option allows underwriters to purchase up to 2,775,000 additional ADS at the same price [3]. Group 2: Shareholder Impact - Assuming the over-allotment option is fully exercised, the total number of shares issued will represent approximately 8.4% of the existing shares as of the announcement date, and about 7.7% after the issuance [3]. - Kingsoft Software Group will subscribe for 20% of the total issuance, which includes both public and private placements [3]. Group 3: Financial Projections - The expected gross proceeds from the issuance of ADS and shares range from $195 million to $226 million, with net proceeds estimated between $187 million and $217 million after deducting underwriting discounts [6]. - The proceeds from the issuance will be used for infrastructure upgrades, technology and product development, and general corporate purposes [8]. Group 4: Ownership Structure Post-Issuance - Following the completion of the issuance and assuming full exercise of the over-allotment option, Kingsoft Software's ownership will decrease to approximately 35.59%, while Xiaomi's stake will drop to about 11.12% [9].