Alibaba shares fell as much as 10% in Hong Kong on August 24 after the company priced an HK$80 billion (US$10.2 billion) share placement to non-US investors to fund its AI push, including expanded AI infrastructure.

Alibaba will issue 710 million new shares at HK$112.70 (US$14) each, below the August 21 closing price of HK$123 (US$16).

The stock was last down 8.4% at HK$112.70 (US$14).

The deal is expected to close on August 26. It follows Alibaba’s June-quarter results, when profit fell 75% and capital expenditure rose 75% to 67.7 billion yuan (US$10.1 billion), as heavy AI spending weighed on results.

Alibaba has also said it plans to invest at least 380 billion yuan (US$56.6 billion) in cloud computing and AI infrastructure over the next three years.

The non-US investor limit likely reflects a standard offshore offering structure under US securities rules rather than a company-specific restriction.

🔗 Source: CNBC

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