Alibaba Shares Drop After $10.2B Equity Placement for AI Expansion
Alibaba shares fell sharply in Hong Kong after the group priced an HK$80 billion (US$10.2 billion) equity placement. It will issue 710 million new ordinary shares to non-US investors at HK$112.70, an 8.4% discount, diluting existing holders by about 3.7%. Net profit fell 75% to 10.44 billion yuan despite revenue growth and 45% AI cloud gains.