Kingsoft Cloud Holdings (KC) said Wednesday it has started an underwritten public offering of 18.5 million American depositary shares, each representing 15 ordinary shares.

Kingsoft Cloud plans to grant underwriters, including affiliates of Morgan Stanley, Goldman Sachs, Deutsche Bank, HSBC, and Merrill Lynch, a 30-day option to purchase additional ADSs. Investors may opt to receive ordinary shares traded on the HKEX instead of ADSs.

Kingsoft Cloud's major shareholder, Kingsoft Corporation also agreed to buy ordinary shares equal to 20% of the total shares offered at a price per share equal to the public offering price per ordinary shares, in a private placement.

Proceeds from both transactions will be used to upgrade and expand infrastructure, invest in technology and product development, and for general and working capital purposes, Kingsoft Cloud said.