360 shares surge after announcement of plans to raise US$1.7b

Shares of the 360 Security Technology surged today after the China’s biggest cyber security firm announced a plan raise 10.8 billion (US$1.7 billion) yuan by private placement on investment of AI and big data.

The investment will cover nine projects covering cyber security research, online search, artificial intelligence and big data, Shanghai-listed 360 said in a statement to the Shanghai Stock Exchange on Tuesday.

The exact pricing has yet to be finalized. The plan is still pending approval from shareholders and the China Securities Regulatory Commission.

Shares of 360 surged 3.1 percent to hit 37.9 yuan, compared with the 0.71 percent drop of the Shanghai stock index today.

 Cyber security has been far beyond a technology problem only, which is a “giant security” covers national security, society development and urban management, Zhou Hongyi, chairman of 360, told an IT forum today. 

AI and intelligent systems still have loopholes inside themselves, which require more investment and upgraded technologies to improve them, Zhou added.

Among the nine projects, 360 will invest in IoT (the Internet of Things) sector covering car communications and smart watches designed for children.

In April, 360 posted net profit growth of 80 percent in 2017, in their first annual fiscal report after listing domestically.

As China’s biggest online security firm with 550 million active monthly users, 360 is expecting rapid growth due to security demands for the Internet of Things devices, as well as the booming smart device sector, covering monitors, watches and smartphones.

Formerly known as Qihoo 360, the firm has prepared for its domestic IPO since it was de-listed from the New York Stock Exchange in 2016.