Alibaba Group said on Sunday it plans to raise approximately $10.21 billion through a share placement to accelerate its artificial intelligence and cloud computing initiatives.
The company will issue 710 million new shares at HK$112.70 each, representing about 3.57% of its enlarged share capital. Gross proceeds total HK$80 billion, with net proceeds of roughly HK$79.7 billion after expenses. The new shares will rank equally with existing ones and are subject to a 90-day lock-up following completion.
The fundraising targets at least six professional and institutional investors outside the United States. All net proceeds will be directed toward expanding Alibaba’s AI infrastructure, enhancing capabilities, and reinforcing its global AI leadership. The placement is expected to close on August 26, pending customary conditions.
The announcement follows Alibaba’s increased investment in AI and cloud services as competition intensifies in China’s technology sector.
