Alibaba (HKEX: 9988) announced on Monday (August 24) its plan to raise capital through a new share placement in Hong Kong, marking a significant milestone in its financing strategy.

The tech giant intends to place 710 million new shares, representing approximately 3.47% of its enlarged issued share capital. Priced at HK$112.70 per share, the placement reflects a discount of about 8.37% from the previous trading day's closing price of HK$123.00 on August 21. This move is expected to generate gross proceeds of roughly HK$80.02 billion, with net proceeds estimated at HK$79.66 billion.

All net proceeds from this placement will be channeled entirely into developing full-stack artificial intelligence (AI) capabilities and strengthening AI infrastructure, underscoring Alibaba's commitment to cementing its global leadership position in the AI sector.

This marks Alibaba's first secondary share offering since its Hong Kong listing in 2019. The scale of this refinancing surpasses previous major deals, including Meituan's HK$74.6 billion raised through a combination of share placement and bond issuance in April 2021, BYD's HK$43.5 billion H-share placement in March 2025, Xiaomi Group's HK$42.6 billion, and CATL's HK$39.1 billion. This transaction now stands as the largest share placement financing in Hong Kong's stock market history.

Leading global financial institutions are orchestrating the deal, with CICC, HSBC, Morgan Stanley, and UBS serving as joint global coordinators, joint bookrunners, and joint placement agents. Barclays, Citigroup, and JPMorgan have been appointed as co-bookrunners for the transaction.