Alibaba sets price in US$10.2b billion new share offer, drops 10% on market open
Alibaba Group Holding has set the offer price for its new share placement at HK$112.70 each to raise HK$80 billion (US$10.2 billion), issuing 710 million shares in one of the largest artificial intelligence-dedicated fundraising efforts by a Chinese technology firm. The price represented an 8.4 per cent discount to the stock’s closing price in Hong Kong on Friday and a 3.6 per cent discount to…
Alibaba Group Holding announced plans for a US$10.2 billion new share offering on Monday, with each share priced at HK$112.70. The issuance of 710 million shares represented a 3.7 percent stake in the company's total of 19.17 billion outstanding shares. The offering price was 8.4 percent below the stock's closing price in Hong Kong the previous day and 3.6 percent lower than the closing price of its New York-listed shares.
The discount reflected strong investor interest, with several banks receiving pre-launch expressions of interest exceeding the deal size. The funds raised will be earmarked for expanding Alibaba's artificial intelligence capabilities and maintaining its global AI leadership. Following the announcement, the company's shares plummeted more than 10 percent upon the opening of the market.
Written by urgent.news from SCMP Tech's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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