From Dealroom · · 50s
Alibaba Shares Drop After $10.2B AI Fundraise
Alibaba's $10.2 billion share sale to fund AI expansion triggers 10% stock drop.
In brief
Alibaba's $10.2 billion share sale to fund AI expansion triggers 10% stock drop. Alibaba priced a $9.67 billion share sale at $13.6 per share to fund AI growth, causing shares to fall over 10%. Originally reported by Dealroom.
Alibaba Priced $13.6 Share Sale
Alibaba set the price for a new share placement at US$13.6 each, raising US$9.67B to fund its AI expansion.
3.7% Share Issuance for AI
The company will issue 710 million shares, about 3.7% of its 19.17 billion total outstanding shares, in one of the largest AI-dedicated fundraises by a Chinese tech firm.
Stock Drops 10% Post Announcement
Shares of the e-commerce and cloud computing giant fell more than 10% after the market opened.
What to remember
Alibaba priced a $9.67 billion share sale at $13.6 per share to fund AI growth, causing shares to fall over 10%.
