Alibaba Group Holding plans to raise around 80 billion Hong Kong dollars through the placement of 710 million newly issued ordinary shares, aimed at non-U.S. investors outside the United States, according to the company itself.
The tech company has set an issue price of 112.70 Hong Kong dollars per share, which implies a discount of 8.4% compared to the closing price recorded last Friday on the Hong Kong Stock Exchange.
The placement operation is expected to be completed on August 26, 2026, provided that the usual conditions for this type of transaction are met. The group has emphasized that this expansion aims to strengthen Alibaba's global positioning in the field of artificial intelligence (AI).
"Alibaba plans to use 100% of the net proceeds from the share placement to invest in its comprehensive AI capabilities, including the expansion and improvement of its AI infrastructure," it has indicated.
At the close of trading this Monday on the Hong Kong Stock Exchange, Alibaba's shares fell by 8.94% and have accumulated a correction of 24% so far this year.
In its first fiscal quarter, corresponding to the period from April to June, the Chinese e-commerce giant reported a net profit attributable of 10.537 billion yuan (1.342 billion euros), which represents a decrease of 76% compared to the result obtained in the same interval of the previous year.
The company explained this sharp cut in its quarterly profit due to the weakness of operating income, along with a lower contribution from net gains from divestitures and a decline in capital gains derived from the revaluation at market prices of its equity holdings.
Regarding the quarter's revenue, income reached 268.953 billion yuan (34.264 billion euros), 9% more than in the first quarter of the previous year, while adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda) fell by 14%, to 39.143 billion yuan (4.987 billion euros).