Alibaba seeks HK$80 billion placement

Raising equity gives firm longer-term funding; sends vote of confidence

Alibaba Group is seeking to raise about HK$80 billion ($10.2 billion) through a new share placement in Hong Kong, which, if completed, would become the world's third-largest primary follow-on offering this year, behind only those placed by Alphabet and Intel.

The placement, announced on Sunday, would mark Alibaba's first new share sale since its Hong Kong listing in 2019. More striking is where every dollar raised is headed — the company plans to use 100 percent of its net proceeds to strengthen its artificial intelligence capabilities, including expanding and upgrading AI infrastructure.