Alibaba Prices HK$80.00 Billion Share Placement at HK$112.70 to Bolster AI Investments

Bulletin Express
08/24

Alibaba Group Holding Limited (Alibaba) has fixed the price of its HK$80.00 billion private share placement at HK$112.70 per share, a 3.6% discount to the HKEX referenced price of HK$116.95.

On 23 August 2026, Alibaba signed a Placing Agreement with China International Capital Corporation, HSBC, Morgan Stanley and UBS as Joint Overall Coordinators, alongside Barclays, Citigroup and J.P. Morgan as Co-Bookrunners. The banks will place 710.00 million new shares—equivalent to 3.70% of Alibaba’s existing 19.17 billion issued shares and 3.57% of the enlarged share base—to at least six professional or institutional investors outside the United States. Completion is scheduled for 26 August 2026, subject to customary conditions, including Hong Kong Stock Exchange listing approval and stable market conditions.

Gross proceeds of HK$80.00 billion (US$10.20 billion) are expected, with net proceeds of approximately HK$79.70 billion after commissions and expenses. Alibaba will direct 100% of the funds toward expanding its full-stack artificial-intelligence capabilities and related infrastructure.

The placement will be executed under Alibaba’s existing General Mandate, which permits issuance of up to 1.91 billion new shares (10% of outstanding shares as of 25 September 2025); no prior shares have been issued under this mandate. The company has agreed to a 90-day lock-up, excluding the current placement and any issuances under existing share incentive schemes.

Post-placement, Alibaba’s issued share capital will rise to 19.88 billion shares. The new investors—collectively holding 3.57%—will join existing major shareholders such as JPMorgan Chase (6.63% long position), Citigroup (5.06% long) and BlackRock (5.07% long).

All Placing Shares will rank pari passu with existing shares. The offering targets non-U.S. investors under Regulation S and will not be registered under the U.S. Securities Act. Alibaba cautions that the transaction remains subject to fulfillment of stated conditions and may not proceed if the Joint Overall Coordinators exercise termination rights.

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