Alibaba Group raised HK$80 billion ($10.2 billion) in a follow-on stock offering in Hong Kong, marking the largest primary follow-on offering ever on the exchange. The company plans to deploy the full net proceeds toward artificial intelligence initiatives, covering chips, infrastructure and AI model development and deployment.
The offering consists of 710 million ordinary shares priced at HK$112.70 each, a 3.6% discount to Alibaba’s most recent closing price. The placement follows the company’s quarterly results, in which it reported spending nearly half of its three-year capital expenditure plan amid intensifying AI investment.
Alibaba’s net income fell 75% year-over-year in the April-June period as the company prioritized AI-related capex. The expected return horizon for AI investments has shortened from three years to 2.5 years, reflecting accelerating demand for AI capabilities, according to management.
The offering ranks as the third-largest primary follow-on globally in 2025, trailing only deals by Alphabet and Intel. Alibaba’s CEO Eddie Wu stated that the investments are necessary to build the computing capacity required to capture future growth in AI-driven markets.
