Alibaba Announces $10.2 Billion Secondary Share Offering
Alibaba Group (NYSE: BABA) revealed plans for a secondary share offering worth approximately $10.2 billion, which is expected to dilute current shareholders significantly. This announcement came on Friday, following a market cap exceeding $310 billion.
The sale price is set at an 8.4% discount from Alibaba’s closing price on the previous trading day. The company plans to allocate all proceeds from the share sale to its AI infrastructure, a move that has faced criticism as it follows a report of decreased second-quarter profits due to AI expenditures.
Currently, only Alphabet and Intel have undertaken larger secondary offerings, at $80 billion and $15 billion, respectively, highlighting the magnitude of Alibaba’s recent action in the market.
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