Alibaba Group Holding raised HK$80 billion ($10.2 billion) in Hong Kong's biggest secondary share sale, according to Bloomberg, underscoring its willingness to amass and spend vast sums to take the lead in global artificial intelligence. The online retail giant-turned-AI player sold 710 million shares at HK$112.7 each — a 3.6% discount to Friday's close of its American depositary receipts and 8.4% below the Hong Kong close. Its shares slid 8.1% at Monday's open in Hong Kong.
The placement is Hong Kong's biggest follow-on offering by a company on record, and the city's largest share sale since Prosus sold $14.7 billion in Tencent Holdings shares in 2021, data compiled by Bloomberg show. The capital raising highlights how Alibaba ranks among the biggest AI spenders among its Chinese rivals, having sold off assets and pledged to spend more than 380 billion yuan over three years on chips, data centers and large-language model development. Its flagship Qwen offering is now the world's most popular model family.
The placement is Hong Kong's biggest follow-on offering by a company on record, and the city's largest share sale since Prosus sold $14.7 billion in Tencent Holdings shares in 2021, data compiled by Bloomberg show. The capital raising highlights how Alibaba ranks among the biggest AI spenders among its Chinese rivals, having sold off assets and pledged to spend more than 380 billion yuan over three years on chips, data centers and large-language model development. Its flagship Qwen offering is now the world's most popular model family.