Alibaba's $10 bln share sale starts AI countdown
BABA•Context on the HK$80 billion placement
New York and Hong Kong-listed Alibaba on August 23 announced it has priced a HK$80 billion ($10.2 billion) share placement to "invest in its full stack AI capabilities, including to expand and enhance its AI infrastructure". The company plans to sell 710 million ordinary shares at HK$112.70 per share, a 3.6% and 8.4% discount to the New York and Hong Kong stock's last closing price, respectively, on August 21.
The share placement was not registered under U.S. securities laws as an offshore transaction, meaning American investors were not eligible to participate, Alibaba said.
The deal is expected to be completed on August 26.
Alibaba's Hong Kong-traded shares were down 8.3% at HK$112.8 by late morning on August 24.
Alibaba’s record share sale funds AI push
HONG KONG, Aug. 24 (Reuters Breakingviews) - The $286 bln Chinese firm's record offering to fund new tech comes just days after reporting a 75% plunge in quarterly earnings. At least it reckons it can recoup AI hardware costs in three years. That kicks off an unusually specific deadline for boss Eddie Wu to deliver returns.
