BABA-W (09988) plans to place 710 million new shares, netting approximately HK$79.7 billion. The funds will be used entirely for investing in its full-stack AI capabilities.

BABA-W (09988) announced that on August 23, 2026, the company entered into a placement agreement with the joint global coordinators (acting on their own and on behalf of the joint bookrunners), whereby the company agreed to appoint the joint global coordinators and the joint bookrunners to handle the relevant placement matters. The joint global coordinators have agreed to act as the company's agent to facilitate the subscription of no less than six placees (professional, institutional, or other investors that are non-U.S. persons outside the United States) for the placement of 710 million new shares at a placement price of HKD 112.70 per share. The placement is expected to be completed on August 26, 2026, subject to the usual completion conditions. The placement price of HKD 112.70 per share represents: (a) a discount of approximately 3.6% to the reference share price; and (b) a discount of approximately 9.0% to the average closing price of USD 126.33 per American depositary share reported on the New York Stock Exchange over the last five consecutive trading days, prior to the signing of the placement agreement (converted and divided by eight in accordance with the ratio of ordinary shares to American depositary shares, which is HKD 123.80). The total number of placement shares under the placement amounts to 710 million new shares, which is approximately 3.70% of the 19.175 billion shares issued as of the date of the placement agreement, and approximately 3.57% of the total issued share capital after the placement shares are allotted and issued (assuming no changes in the number of shares issued by the company from the date of the placement agreement to the settlement date, aside from the placement shares being allotted and issued). Assuming all placement shares are fully placed to the placees, the total amount raised from the placement is expected to be HKD 80 billion, while the net proceeds from the placement (after deducting placement commissions and estimated expenses) will be approximately HKD 79.7 billion. The placement aims to further strengthen Alibaba's leading position in global AI. Alibaba plans to use 100% of the net proceeds from the proposed placement to invest in its full-stack AI capabilities and enhance AI infrastructure development.