Alibaba (BABA) stock fell over 8.5% on Friday after the company announced a massive share sale in Hong Kong to fund its artificial intelligence (AI) investments. The company issued 710 million new shares to raise $10.21 billion in what was the largest-ever primary follow-on offering from a company listed in Hong Kong.
Alibaba priced the shares at an 8.4% discount to its last traded price in Hong Kong. To be sure, pricing the shares below the prevailing prices is a norm rather than an exception in such offerings, and in June, Alphabet (GOOG) (GOOGL) priced its shares at a discount of over 6% as it raised $80 billion in what was the biggest follow-on stock sale this year. Incidentally, even Berkshire Hathaway (BRK.A) (BRK.B), whose chair, Warren Buffett, is known for his value investing credentials, put $10 billion in that offering and overall put $17 billion in the search giant in Q2, which made it the conglomerate's third-biggest holding.
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#kong
Alibaba priced the shares at an 8.4% discount to its last traded price in Hong Kong. To be sure, pricing the shares below the prevailing prices is a norm rather than an exception in such offerings, and in June, Alphabet (GOOG) (GOOGL) priced its shares at a discount of over 6% as it raised $80 billion in what was the biggest follow-on stock sale this year. Incidentally, even Berkshire Hathaway (BRK.A) (BRK.B), whose chair, Warren Buffett, is known for his value investing credentials, put $10 billion in that offering and overall put $17 billion in the search giant in Q2, which made it the conglomerate's third-biggest holding.
Soros Fund Management Opened a New Position in Nebius During Q2. What This Means for NBIS Stock.
Nvidia Earnings, Jackson Hole and Other Key Things to Watch this Week
Ahead of Nvidia Earnings, Here's What Barchart Data Says Comes Next for NVDA Stock
#kong
2 months ago
