Alibaba just raised more than $10 billion by selling new shares in Hong Kong. Investors rewarded the effort by dumping the stock.
Shares of Alibaba Group opened down roughly 8% on August 24, falling to as low as HK$111 at one point, a decline approaching 10% intraday. The sell-off came despite the placement being nearly three times oversubscribed, with total demand reaching around $28 billion.
Inside the deal
Alibaba issued 710 million new ordinary shares priced at HK$112.70 each, raising a total of HK$80 billion, or approximately $10.2 billion. That pricing represented a discount of about 8.4% to the prior close.
The placement is the largest primary follow-on offering ever for a Hong Kong-listed company. Globally, it ranks as the third-largest in 2026, trailing only similar capital raises from Alphabet and Intel.
