HK Stock Market Move | BABA-W (09988) opened down over 8% and plans to raise HKD 80 billion through a share placement, all of which will be invested in AI development.

BABA-W (09988) opened down over 8%. As of the time of writing, it has dropped 8.05%, trading at HKD 113.1, with a transaction volume of HKD 1.449 billion. In news, on August 23, Alibaba announced its plan to place new shares for non-U.S. persons outside the United States, with a total placement amount of HKD 80 billion. Alibaba will issue 710 million shares at a placement price of HKD 112.7 per share, which represents a discount of approximately 8.4% compared to the closing price of HKD 123 on August 21. Notably, this is the first time Alibaba has initiated a share placement since its listing on the Hong Kong stock exchange in 2019. The net proceeds from the placement will be used 100% for investing in full-stack AI capabilities, enhancing AI infrastructure, and further solidifying Alibaba's global leadership position in the AI field.