Alibaba Will Likely Provide Assessment on Share Issuance Impact

Dow Jones
昨天

0937 GMT - Alibaba will likely produce a comprehensive assessment on the impact of its newly announced equity issuance on investors, Jefferies analysts write. The Chinese e-retailer said it plans to place shares worth $10.2 billion to extend its leadership in the AI sector. Investors responded with concern that the new issuance would dilute their own holdings in the Hong Kong-listed company. However, the company will provide detail on the impact on investors' earnings-per-share, and will explain the issuance in the context of the group's buyback plans, the analysts say. They calculate the issuance could dilute earnings-per-share by 3.5%. Alibaba shares fall 8.5% in Hong Kong. U.S.-listed depositary receipts fall 3.4% premarket.

 

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