Alibaba (BABA) Stock Falls 8% After $10 Billion Hong Kong Share Placement

TLDR

• Alibaba priced 710 million new shares at HK$112.70, an 8.4% discount, raising HK$80 billion ($10.21 billion)
• The deal is the largest-ever primary follow-on offering by a Hong Kong-listed company
• Funds will go toward AI infrastructure, including chips, data centres, and AI models
• Michael Burry says BABA would need to fall another 50% before he’d consider buying again
• Wall Street still holds a Strong Buy consensus with an average price target of $185.67, implying 55.6% upside

Alibaba priced 710 million new shares at HK$112.70 each, raising HK$80 billion ($10.21 billion) in a deal that sent its Hong Kong-listed stock down 8% in early Monday trading. U.S.-traded BABA also fell more than 3% in pre-market trading.

Alibaba Group Holding Limited, BABA

The share price was set at an 8.4% discount to Friday’s Hong Kong close. That kind of haircut tends to spook the market, and this time was no different.

The deal is the largest-ever primary follow-on offering by a Hong Kong-listed company. Globally, it ranks as the third-largest such offering this year, behind only Alphabet and Intel.

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