Alibaba (BABA) Stock: $10.2 Billion Share Sale to Fund Full-Stack AI Push

TLDR

• Alibaba plans to raise HK$80 billion ($10.2 billion) through a Hong Kong share placement, the largest primary follow-on offering ever by a Hong Kong-listed company.
• The company will sell 710 million ordinary shares at HK$112.70 each, a 3.6% discount to the latest closing price.
• All net proceeds will go toward Alibaba’s “full stack” AI capabilities, including semiconductors, computing infrastructure and AI model development.
• Demand was strong enough that Alibaba increased the offering size after it became oversubscribed, with sovereign wealth funds among interested investors.
• BABA stock fell 8.57% following the announcement, with net profit already down 75% year-over-year in the April-to-June quarter due to rising AI capital spending.

Alibaba’s BABA ADR dropped 8.57% after the company announced plans to raise $10.2 billion through a Hong Kong share placement, its biggest capital raise in years.

Alibaba Group Holding Limited, BABA

The placement involves 710 million ordinary shares priced at HK$112.70 each. That price is a 3.6% discount to the stock’s most recent closing level.

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