On August 24, BABA-W declined 8.21% in regular trading, trading at HK$113.1/share with turnover of HK$4.143 billion, as the stock opened sharply lower following its announcement of the largest share placement in Hong Kong stock market history.

Alibaba announced a placement of 710 million new shares at HK$112.70 per share, representing an 8.4% discount, raising approximately HK$800 billion (USD 10.2 billion) in net proceeds. The placement, completed within one hour with oversubscription from sovereign wealth funds across the Middle East, Europe, and Asia, will direct 100% of proceeds toward full-stack AI capabilities and infrastructure. This marks Alibaba's first share placement since its Hong Kong listing in 2019, diluting existing shareholders by approximately 3.7%.

The fundraising comes days after Alibaba reported Q1 FY2027 results showing capital expenditure surging 75% year-over-year to approximately USD 9.3 billion, while net profit fell 75%. Management has committed at least RMB 380 billion over three years to AI and cloud infrastructure, with roughly half already deployed.

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