Proceeds could reach $8b which would be used for corporate expenditure.
Chinese e-commerce giant Alibaba is planning on raising at least $5b through selling US$-denominated bonds this month, reports Reuters.
Depending on investor response, proceeds could reach $8b which Alibaba is likely to use for general corporate expenditure, one of the sources said. The plan, including the timeline, is not yet final and subject to change.
The plan comes months after an October speech by billionaire co-founder Jack Ma about regulation stifling innovation that led to the suspension of affiliate Ant Group’s $37b initial public offering.
Since then, Chinese regulators have launched an antitrust probe into Alibaba and ordered Ant to shake up its lending and other consumer finance businesses, including the creation of a separate holding company to meet capital requirements.
The fundraising will be a test of investor sentiment towards Alibaba, and comes as Ma’s absence from public view in the past two months has fuelled social media speculation over his whereabouts.
Here’s more from Reuters.
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