Alibaba raises 10.2 billion USD through massive share placement for AI

Alibaba Group Holding Limited has completed a massive equity placement, issuing 710 million new shares to non-US persons outside the United States. The move raised approximately 80 billion Hong Kong dollars (roughly 10.2 billion USD) to fund the company’s aggressive expansion into artificial intelligence infrastructure.

This transaction represents the largest follow-on offering in the history of Hong Kong-listed companies. The decision to pursue equity financing rather than debt is attributed to the high cost of servicing USD debt and the need to protect net profit margins, which saw a significant decline in the first quarter of fiscal year 2027. The capital will support AI computing power, data centers, and cloud infrastructure as the company faces rising capital expenditure requirements that exceed its current operating cash flow.