Alibaba Group raised HK$80 billion ($10.2 billion) in Hong Kong’s largest follow-on share offering, with the company saying it will use all net proceeds to invest in its AI infrastructure.
That transaction, which closed Sunday, marks Hong Kong’s largest share sale since Prosus NV, the technology-investment firm, divested $14.7 billion worth of Tencent Holdings stock in 2021, according to Bloomberg
The company sold 710 million shares at HK$112.70 each; the price represented a 3.6% discount to where Alibaba’s U.S.-listed shares closed on Friday. The offering drew institutional demand amounting to roughly three times the available shares, Bloomberg reported, citing people with knowledge of the transaction. Alibaba stock fell 8.5% on Monday, its steepest single-day drop since early 2025.
Despite the decline, Chairman Joseph Tsai purchased about HK$80 million worth of Alibaba stock, and Chief Executive Officer Eddie Wu acquired about HK$40 million, according to the outlet, citing filings with the Hong Kong stock exchange. The offering is being made exclusively to non-U.S. persons in offshore transactions, the company said. The company said it plans to direct all net proceeds toward its full-stack AI strategy, with a particular focus on building out and improving the underlying infrastructure that supports it.