China: Alibaba Group Holding Ltd. has proposed a new share placement in Hong Kong worth HK$80 billion ($10.2 billion), the company said on Sunday, in what would be one of the largest equity offerings of its kind.
Alibaba said the proposed placement would be the largest-ever primary follow-on offering by a Hong Kong-listed company and the biggest Regulation S equity offering on record.
The transaction would also rank as the world’s third-largest primary follow-on share sale this year, behind offerings by Alphabet and Intel, according to the company.
Alibaba said it plans to use 100% of the net proceeds from the share placement to strengthen its artificial intelligence capabilities.
The funds will be directed toward investments in the company’s full-stack AI capabilities, including the expansion and enhancement of its AI infrastructure.
The proposed transaction comes as Alibaba increases its focus on artificial intelligence and related infrastructure, positioning the technology as a key area for future investment and growth.
Further details of the share placement were not provided in the announcement.