Alibaba’s US$10 billion share sale three times oversubscribed in Hong Kong
Alibaba Group Holding has sold 710 million new shares at HK$112.70 each to raise HK$80 billion (US$10.2 billion) in one of the largest artificial intelligence-dedicated fundraising efforts by a Chinese technology firm. The offer 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 the Friday closing price of its New…
Alibaba's US$10 billion share sale in Hong Kong was three times oversubscribed, reflecting strong investor confidence in the company's AI-focused expansion. The top executives, Chairman Joe Tsai and CEO Eddie Wu Yongming, each purchased significant shares in the transaction, further demonstrating their commitment to Alibaba's new direction.
The share issuance plan resulted in 710 million new shares, accounting for 3.7% of Alibaba's total outstanding shares. The demand for the shares surged, exceeding the US$10 billion target shortly after the sale began, bringing in US$28 billion in investor interest. Major sovereign wealth funds from the Middle East, Europe, and Asia participated in the offering, securing a substantial portion of the final allocation.
The share sale aims to fund Alibaba's ambitious AI initiatives, including its chip manufacturing, computing infrastructure, and large language model development. While some analysts anticipate short-term sentiment impact due to dilution and capital expenditure, they also highlight Alibaba's strong growth prospects and AI leadership position as positive factors for the company's long-term trajectory.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
