Alibaba Group (BABA) priced a placement 710 million new shares at 112.70 Hong Kong dollars ($14.38) apiece in Hong Kong for about HK$80 billion in proceeds, the company said Sunday.

The company expects the placement to close Wednesday and plans to use the net proceeds to invest in its full stack AI capabilities, it said.

Alibaba shares were down 3.5% in premarket activity Monday.