Moore Threads plans to use most IPO proceeds to buy bank products

The investment decision was approved by the board on Friday and doesn’t have to be approved in shareholder meeting

Moore Threads Technology Co., a leading Chinese artificial intelligence chipmaker, plans to put most of the funds raised through its recent listing into banking products.

The company plans to invest 7.5 billion yuan ($1.1 billion) of “idled funds,” equal to about 90% of the proceeds from its initial public offering, to purchase a few principal-guaranteed deposit products such as timed deposits and certificates of deposit, it said in a Shanghai stock exchange filing on Friday.

Earlier this month, the company raised about 8 billion yuan through a public listing in Shanghai, and it promised to use the cash to fund chip development. The stock has surged 613% over the six trading sessions since its debut, amid optimism about the health of the AI industry in China.

Moore Threads didn’t immediately respond to requests for comment.

The investment decision was approved by the board on Friday and doesn’t have to be approved in shareholder meeting, according to the filing. Moore Threads had previously said proceeds from the IPO will fund next-generation projects in AI and graphics chips as well as supplement working capital.

The company said it will strictly follow its original three-year plan to invest all the IPO proceeds step by step, ThePaper.cn reported. The IPO funds that haven’t been deployed will be invested in those bank products to enhance capital returns, according to the report.