Alibaba shares fall 8% after $10 billion Hong Kong share sale
Aug 24 : Alibaba shares fell 8 per cent in early Hong Kong trade on Monday after the tech company finalised a HK$80 billion ($10.21 billion) share placement at HK$112.70 apiece, in a deal aimed at funding artificial intelligence-related development.The Chinese e-commerce and cloud computing company priced 710
CashCrumb$CCRUMB
FILE PHOTO: An Alibaba logo is displayed at the company's booth at China International Fair for Trade in Services (CIFTIS) in Beijing, China, September 10, 2025. REUTERS/Maxim Shemetov/File Photo
Aug 24 : Alibaba shares fell 8 per cent in early Hong Kong trade on Monday after the tech company finalised a HK$80 billion ($10.21 billion) share placement at HK$112.70 apiece, in a deal aimed at funding artificial intelligence-related development.
The Chinese e-commerce and cloud computing company priced 710 million new shares at an 8.4 per cent discount to the last close of its Hong Kong-listed stock.
The deal is the largest-ever primary follow-on offering by a Hong Kong-listed company and the third-largest globally this year after offerings by Alphabet and Intel.
Alibaba intends to use proceeds to fund AI development, including the expansion of related infrastructure.
CNA Games
Guess Word
Crack the word, one row at a time
Buzzword
Create words using the given letters
Mini Sudoku
Tiny puzzle, mighty brain teaser
Mini Crossword
Small grid, big challenge
Word Search
Spot as many words as you can
Show More
Show Less
The share placement comes a week after Alibaba reported quarterly earnings in which it said it had already spent nearly half of its three-year capital expenditure plan. It brought forward its projected payback on AI investment to two and a half years from three due to surging demand for AI services.
Its quarterly net profit fell 75 per cent from a year earlier due primarily to AI-related spending.
Last week, digital technology and AI division Alibaba Cloud launched its third data centre in South Korea, bringing its network to 104 availability zones across 30 regions. The move was a part of Alibaba's AI infrastructure pledge, announced in October, to invest 380 billion yuan ($56.54 billion) over three years.
($1 = 6.7210 Chinese yuan renminbi)
Our chief editor shares analysis and picks of the week's biggest news every Saturday.
Get our pick of top stories and thought-provoking articles in your inbox
Stay updated with notifications for breaking news and our best stories
Join our channel for the top reads for the day on your preferred chat app