Alibaba shares fell sharply in Hong Kong on Monday after the company priced a HK$80 billion ($10.2 billion) share placement to fund artificial intelligence spending, putting pressure on the stock as investors weighed the dilution from 710 million new shares.
The new shares were priced at HK$112.70 each, an 8.4% discount to Friday's closing price, and will account for about 3.6% of Alibaba's enlarged share capital. Alibaba said the placement is expected to close on Aug. 26, with all net proceeds earmarked for its full-stack AI capabilities, including infrastructure.
