{"slug": "alibaba-shares-fall-8-after-10-billion-hong-kong-share-sale", "title": "Alibaba shares fall 8% after $10 billion Hong Kong share sale", "summary": "Alibaba Group Holding Ltd. shares fell 8% in early Hong Kong trade on Monday after the company finalized a HK$80 billion ($10.21 billion) share placement at HK$112.70 per share, pricing 710 million new shares at an 8.4% discount to fund artificial intelligence-related development. The deal is the largest-ever primary follow-on offering by a Hong Kong-listed company and the third-largest globally this year after Alphabet Inc. and Intel Corp. Alibaba intends to use the proceeds for AI development, including infrastructure expansion, and reported a 75% drop in quarterly net profit due to AI-related spending.", "body_md": "Aug 24 (Reuters) - Alibaba shares fell 8% in early Hong Kong trade on Monday after the tech company finalised a HK$80 billion ($10.21 billion) share placement at HK$112.70 apiece, in a deal aimed at funding artificial intelligence-related development.\n\nThe Chinese e-commerce and cloud computing company priced 710 million new shares at an 8.4% discount to the last close of its Hong Kong-listed stock.\n\nThe deal is the largest-ever primary follow-on offering by a Hong Kong-listed company and the third-largest globally this year after offerings by Alphabet and Intel.\n\nAlibaba intends to use proceeds to fund AI development, including the expansion of related infrastructure.\n\nThe share placement comes a week after Alibaba reported quarterly earnings in which it said it had already spent nearly half of its three-year capital expenditure plan. It brought forward its projected payback on AI investment to two and a half years from three due to surging demand for AI services.\n\nIts quarterly net profit fell 75% from a year earlier due primarily to AI-related spending.\n\nLast week, digital technology and AI division Alibaba Cloud launched its third data centre in South Korea, bringing its network to 104 availability zones across 30 regions. The move was a part of Alibaba's AI infrastructure pledge, announced in October, to invest 380 billion yuan ($56.54 billion) over three years.\n\n($1 = 7.8391 Hong Kong dollars)\n\n($1 = 6.7210 Chinese yuan renminbi)\n\n(Reporting by Sherin Sunny in Bengaluru; Editing by Christopher Cushing)", "url": "https://wpnews.pro/news/alibaba-shares-fall-8-after-10-billion-hong-kong-share-sale", "canonical_source": "https://ca.finance.yahoo.com/news/alibaba-shares-fall-8-10-015743067.html", "published_at": "2026-08-24 01:57:43+00:00", "updated_at": "2026-08-24 02:13:37.638555+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-infrastructure"], "entities": ["Alibaba Group Holding Ltd.", "Alibaba Cloud", "Alphabet Inc.", "Intel Corp.", "Hong Kong"], "alternates": {"html": "https://wpnews.pro/news/alibaba-shares-fall-8-after-10-billion-hong-kong-share-sale", "markdown": "https://wpnews.pro/news/alibaba-shares-fall-8-after-10-billion-hong-kong-share-sale.md", "text": "https://wpnews.pro/news/alibaba-shares-fall-8-after-10-billion-hong-kong-share-sale.txt", "jsonld": "https://wpnews.pro/news/alibaba-shares-fall-8-after-10-billion-hong-kong-share-sale.jsonld"}}