Alibaba Group Holding Ltd. plans to raise 80 billion Hong Kong dollars — roughly 8.73 billion euros — through a new share issuance on the Hong Kong stock exchange, marking the largest-ever capital increase by an already-listed company in the city's market history.
The transaction ranks as the world's third-largest equity offering this year, trailing only similar moves by U.S. technology giants Alphabet Inc. and Intel Corporation. Alibaba intends to channel the entire proceeds into artificial intelligence, with planned investments spanning the full breadth of AI technology, including the expansion and upgrading of infrastructure such as data centres.
The fundraising announcement follows Alibaba's disclosure this week that heavy AI-related capital expenditure and regulatory penalties drove a 75% decline in second-quarter net income, even as revenue climbed 9%.