Alibaba’s US$10 billion share sale three times oversubscribed in Hong Kong
Alibaba Group has successfully raised US$10 billion through a share sale in Hong Kong, which was three times oversubscribed. The company plans to use the funds to accelerate its pivot toward full-stack AI capabilities, including chips and large language models.
Why it matters
This massive capital injection underscores the intense competition and investment in AI infrastructure among major Chinese tech giants.
The top two executives at Alibaba Group Holding bought a combined HK$120 million (US$15.3 million) worth of the company’s ordinary shares on Monday in a vote of confidence after the tech giant unveiled one of China’s biggest fundraising rounds dedicated to AI.
The share placement, the first since Alibaba’s listing in Hong Kong in 2019, was oversubscribed three times amid strong investor sentiment, according to people familiar with the situation, reflecting what analysts said was “stronger growth visibility” at the company.
Group chairman Joe Tsai paid roughly HK$80 million for 720,000 shares, while CEO Eddie Wu Yongming bought 350,000 units for around HK$40 million, according to Hong Kong stock market filings on Monday afternoon.
The personal investments, done via the purchase of ordinary shares from the stock market, were separate from Alibaba’s share issuance plan.
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