Alibaba shares drop on plans to raise $1.5 bln via bond offering

Published 04/07/2025, 05:48
© Reuters

Investing.com-- Alibaba (NYSE:BABA) Group (HK:9988) shares fell on Friday after the company announced a HK$12 billion ($1.53 billion) exchangeable bond offering linked to its subsidiary, Alibaba Health Information Technology (HK:0241).

The company announced the offering on Thursday, and released the pricing details of the zero-coupon bonds on Friday.

The bonds, convertible into Alibaba Health shares at a fixed premium, are intended to support the company’s ongoing investment in cloud infrastructure and global e-commerce expansion.

The bonds carry no interest and mature in 2032, but investors can opt to convert them into shares from the 41st day after issuance.

The initial exchange price of HK$6.23 represents a 48% premium to Alibaba Health’s latest private placement price, the company said in an exchange filing.

Hong Kong-listed Alibaba Group shares fell as much as 3% on Friday, while Alibaba Health shares slumped nearly 7%.

This offering marks Alibaba’s second major bond issuance in less than a year, following a $5 billion dual-currency deal in late 2024.

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