Z.AI raises USD5 billion through debut convertible bond offering and concurrent H-share placement

Z.AI is a leading AI company in China dedicated to developing general-purpose large models and recognized for pioneering its GLM foundation model framework in 2021 as China's first proprietary pre-trained large model framework. The company’s H shares have been listed on the Main Board of the Hong Kong Stock Exchange of since January 2026. 

The net proceeds are intended to fund Z.AI’s R&D of next-generation foundation models and computing infrastructure; business expansion, strategic investments, and potential acquisitions; and for working capital and general corporate purposes.  

A&O Shearman provided comprehensive legal support across all aspects of the transaction, enabling the Company to launch the transaction within the desired time frame. This included negotiating the convertible bond documentation, drafting and negotiating the equity placement documentation, and coordinating the due diligence process. 

The A&O Shearman team was led by partners Agnes Tsang, Lina Lee and Kyungwon (Won) Lee, with support from senior associates Jiayin Yu and Michelle Tsang, associate Eileen Qu, and paralegal Jayden Wu. Partner Chris Angus and senior associate Alana Burton acted as counsel to the trustee.