Alibaba shares plunge 10% after announcing 10.2 billion dollar share sale to fund AI

Corporate ActionEarnings Impact 4
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Alibaba shares fell as much as 10% in Hong Kong on Monday after the company priced a new share offering worth 80 billion Hong Kong dollars, or 10.2 billion US dollars, to non-American investors. It will issue 710 million new shares at 112.70 Hong Kong dollars each, compared with Friday's closing price of 123 Hong Kong dollars. The stock was last trading down 8.4% at 112.7 Hong Kong dollars. The company said it will use all net proceeds to invest in end-to-end AI capabilities, including expanding and upgrading AI infrastructure. The share sale is expected to close on Wednesday and comes just days after Alibaba reported profit for the quarter ended June fell 75%, as capital expenditure surged 75% to 67.7 billion yuan. Meanwhile, Alibaba's US-listed shares fell 3.4% in premarket trading.

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Artificial Intelligence · 2 stocks

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