Meitu Inc. (01357.HK) saw its stock price surge by 14.92% in early trading on Wednesday, following the announcement of a strategic collaboration with Alibaba.com China Limited and plans to issue convertible bonds worth US$250 million.
The Hong Kong-listed company, known for its photo editing apps, revealed that it would enter into strategic partnerships with Alibaba.com China, an indirect wholly-owned subsidiary of Alibaba Group Holding Limited. The collaboration will focus on key areas such as e-commerce, AI technology, and cloud computing capabilities, potentially opening up new growth avenues for Meitu.
As part of this strategic move, Meitu plans to issue convertible bonds to Alibaba with a total principal amount of US$250 million. The bonds will have a three-year term and an initial conversion price of HK$6.00 per share. This significant investment from a tech giant like Alibaba appears to have boosted investor confidence in Meitu's future prospects, driving the sharp increase in its stock price. The market's positive reaction suggests that investors are optimistic about the potential synergies and growth opportunities that this collaboration could bring to Meitu in the rapidly evolving digital landscape.
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