Alibaba said on Sunday that it plans to place new shares in Hong Kong, raising HK$80 billion, or about $10.2 billion. The company described the deal as the largest primary follow-on offering ever by a Hong Kong-listed company. The announcement quickly weighed on Alibaba’s Hong Kong-traded shares on Aug. 24, with the stock opening lower and extending losses to more than 10% at its worst point before trimming the decline to 9%, according to Bitget market data. The broader market also came under pressure, with the Hang Seng Index down 1.9% on the day and the Hang Seng Tech Index off 3.58%. Separately, investor Michael Burry posted an updated view on Alibaba on X. Burry said he had switched his Alibaba position into JD.com several months ago, adding that stock issuance had become Alibaba’s new normal. He also said he would not consider the stock again unless it fell by half from current levels.
Alibaba said on Sunday that it plans to place new shares in Hong Kong, with the offering sized at HK$80 billion, or $10.2 billion. The company said the transaction would be the largest primary follow-on offering ever completed by a Hong Kong-listed company.
The news pressured Alibaba’s Hong Kong shares on Aug. 24. According to Bitget market data, the stock opened lower and kept falling after the open, at one point dropping more than 10% intraday before narrowing its loss to 9%.
The wider Hong Kong market also weakened. The Hang Seng Index was down 1.9% on the day, while the Hang Seng Tech Index fell 3.58%.
Michael Burry also updated his view on Alibaba on X. Burry said he had switched his Alibaba holdings into JD.com several months ago, writing that 「issuing stock is now Alibaba’s new normal.」 He added: 「Unless the stock drops by half from here, I won’t consider it again.」
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