SenseTime Group plans to raise HK$3.25 billion (US$415.2 million) through a share placement to fund investments in advanced artificial intelligence, joining a wave of companies tapping Hong Kong’s equity market amid improving sentiment.

The Chinese AI company planned to sell 1.7 billion shares at HK$1.9 each, representing an 8.6 per cent discount to Thursday’s closing price, it said in a filing to the Hong Kong stock exchange on Friday.

The new shares will account for about 4.04 per cent of its enlarged share capital.

“The company is committed to deepening its native multimodal architecture and exploring differentiated experiences for a new generation of AI-native applications,” SenseTime said. “The placing will provide further financial resources for the company to continue its investments in these areas and to support the general working capital needs.”

SenseTime is the latest to tap the market as a revival in initial public offerings and firmer secondary trading fuel demand for new shares.

The Hang Seng Index has remained resilient this year, posting a gain of 2.1 per cent despite volatility triggered by the oil shock. More than 80 companies have conducted follow-on share sales, raising a combined HK$52.5 billion, according to Bloomberg data.