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Alibaba Shares Slide After $10.2 Billion AI Share Sale at Sharp Discount

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Alibaba shares fell sharply in Hong Kong after the company launched a $10.2 billion share sale at a significant discount to fund its expanding artificial intelligence strategy.

The Chinese technology group said it will sell HK$80 billion worth of new shares at HK$112.70 each, representing an 8.4% discount to the previous closing price. The offering will increase Alibaba’s outstanding share count by about 3.6%, raising concerns over dilution.

The proceeds will be used to finance AI chips, infrastructure and model development, as Alibaba shifts more capital toward its Qwen AI ecosystem and cloud computing business.

Despite the selloff, investor demand for the offering was strong, with reported orders totaling around $28 billion. Sovereign wealth funds and long-term institutional investors accounted for a significant portion of demand.

Alibaba Chairman Joe Tsai and CEO Eddie Wu also bought shares following the placement, signaling confidence in the company’s long-term strategy.

The fundraising comes shortly after Alibaba reported a steep decline in quarterly profit, largely due to heavy AI-related spending. Management has argued that these investments could break even within roughly three years as margins improve and proprietary chips reduce reliance on third-party hardware.

The offering is the largest follow-on share sale ever completed by a Hong Kong-listed company and underscores how aggressively global technology companies are raising capital to fund the AI infrastructure race.

Singtel Sells $1.16 Billion Stake in Bharti Airtel to Fund Digital Investments

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Singapore Telecommunications (Singtel) has sold a 0.8% stake worth about $1.16 billion in India’s Bharti Airtel, as part of its ongoing plan to recycle assets and boost investments in digital infrastructure, the company announced on Friday.

Singtel’s investment arm Pastel sold 51 million shares of Bharti Airtel, India’s second-largest telecom operator, at 2,030 rupees ($23.10) per share — about 3.1% below the stock’s previous close. The transaction was executed through a private placement to institutional investors.

The sale is part of Singtel’s S$9 billion (US$6.6 billion) mid-term asset recycling program, which aims to raise funds for expansion in digital services, data centers, and next-generation connectivity.

Following the divestment, Singtel now holds a 27.5% stake in Bharti Airtel, down from 31.4% in 2022, continuing a gradual reduction of its holdings since first investing in the Indian company in 2000.

Singtel said the sale will generate an estimated S$1.1 billion ($805 million) in gains, benefiting from Bharti Airtel’s surging valuation — its shares have quadrupled since 2019, driven by stronger earnings and rising average revenue per user.

Investors reacted positively to the move, sending Singtel’s shares up about 3% to S$4.65 by midday trading in Singapore. Bharti Airtel shares, however, fell around 4.5% in Mumbai, with more than 55 million shares changing hands via block deals, according to LSEG data.

The deal underscores Singtel’s strategy to strengthen its balance sheet while maintaining a long-term presence in one of the world’s fastest-growing telecom markets.

SoftBank Targets $4.9 Billion via T-Mobile Share Sale, Bloomberg Reports

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SoftBank Group Corp is planning to raise nearly $4.9 billion through an overnight block sale of shares in T-Mobile US, according to a report by Bloomberg News on Monday. The Japanese tech conglomerate is offering to sell 21.5 million T-Mobile shares at a price range of $224 to $228 per share.

The proposed sale price reflects a discount of over 3% from T-Mobile’s closing price of $230.99 on Monday. The stake represents approximately 1.9% of T-Mobile’s outstanding shares, based on Reuters calculations. Bank of America is reportedly handling the deal.

Neither SoftBank nor T-Mobile has issued public comments in response to the report.

SoftBank’s decision to divest part of its T-Mobile holdings comes shortly after it reported a 1.15 trillion yen ($7.94 billion) profit for the fiscal year ending March 2025, rebounding from a 227.6 billion yen loss the previous year. The move also signals SoftBank’s continued strategy of realizing gains from past tech investments to support its broader portfolio, which has included both major successes like Alibaba and high-profile failures like WeWork.

The sale is being conducted as an unregistered offering, typically structured to appeal to institutional investors without going through full regulatory disclosures.