Espressif Systems raises $244m in private placement for R&D

Espressif Systems (Shanghai) Co., Ltd. announced the successful completion of a private placement of 10,440,288 A-share ordinary shares to specific investors at a price of CNY 170.29 per share. The total raised capital amounted to CNY 1,777,876,643.52, with net proceeds of CNY 1,765,819,289.88 after deducting issuance expenses. The shares, which are restricted and will be listed on the Shanghai Stock Exchange after a six-month lock-up period, were registered on October 17, 2025.

The private placement resulted in an increase of 10,440,288 restricted circulating shares, raising the total share capital to 167,143,010 shares. Following the issuance, the company's total assets and net assets will increase, while the asset-liability ratio will decrease, improving capital structure and debt repayment capabilities.

The proceeds will be allocated across several key projects, including Wi-Fi 7 router chip R&D, Wi-Fi 7 intelligent terminal chip R&D and industrialization, AI-side chip R&D based on RISC-V IP, Shanghai R&D center construction, and supplementing working capital. The company has also signed tripartite regulatory agreements for the management of the raised funds, ensuring their dedicated use.