Tencent Holdings shares fell on October 8 after reports that the company is considering an offshore bond sale of up to $5 billion. The stock dropped as much as 2.2% during trading in Hong Kong. It closed down 1.8% at HK$413.2.
The potential sale could be denominated in U.S. dollars and offshore yuan, and may launch as early as this month. It would reflect a broader trend among technology companies raising capital to cover the growing cost of developing artificial intelligence.
The funds would support Tencent’s rising spending on AI projects and computing power. Capital expenditures surged 176% year over year in the June quarter.
In June, Tencent raised nearly $4.7 billion in a separate debt offering. The company has not officially commented on the reports.