Alibaba completed the largest follow-on share offering in Hong Kong’s history, raising the equivalent of $10.2 billion, or HK$80 billion, through the issuance of 710 million new ordinary shares at HK$112.70 each. The stock dropped 8.5% in Hong Kong trading on the first session, its steepest single-day decline since early 2025, before Chairman Joseph Tsai and CEO Eddie Wu purchased approximately 720,000 and 350,000 shares respectively for a combined total of about $15.3 million, signaling their confidence in the underpriced post-dilution stock. All proceeds from the offering are earmarked for AI infrastructure and capabilities development, as Alibaba’s quarterly net income declined by 75%. The offering was nearly three-times oversubscribed, demonstrating strong institutional demand despite its dilutive nature.
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