Alibaba Shares Drop on $10.2B Share Placement for AI Expansion

Listed shares of Alibaba experienced a significant decline on Monday following the company’s $10.2 billion share placement aimed at funding its artificial intelligence expansion. The share placement, finalized at HK$112.70 per share, represents an 8.4% discount to the previous closing price. Alibaba intends to utilize the proceeds to bolster AI-related development and infrastructure amidst heightened competition and ongoing Sino-U.S. technology tensions. The market reaction to the share placement was swift, with Alibaba shares plummeting up to 10% to HK$110.10 in early Hong Kong trading. This move marks the largest-ever primary follow-on offering by a Hong Kong-listed company and the third-largest…