Alibaba raised more than $10 billion by issuing 710 million new shares in Hong Kong at HK$112.70 per share, representing an 8.4% discount to the prior close. On August 24, the first day of trading, the stock fell 8%, dropping as low as HK$111, approaching a 10% intraday decline despite total demand reaching approximately $28 billion. The placement, the largest primary follow-on offering ever for a Hong Kong-listed company, marks Alibaba’s first primary share issuance since its secondary listing in September 2019. Proceeds will be entirely directed toward developing AI capabilities as part of a three-year investment plan representing approximately $53 to $56 billion.
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