Alibaba Health raising US$1 billion through new share sale to fund expansion of pharmaceutical network
- Alibaba Group’s flagship health care platform to sell 400 million new shares for HK$20.05-HK$20.50 each, according to deal’s term sheet
- Company had planned to expand its online drug sales this year as demand for its services surged during the coronavirus pandemic in China
Alibaba Health Information Technology has launched a follow-on new share sale to raise up to US$1.06 billion, as the company seeks to expand its pharmaceutical and medical services network, which received a major boost from the coronavirus pandemic in China.
The flagship health care platform of Alibaba Group Holding is offering 400 million new shares, or 3.1 per cent of its outstanding share capital, in a tight range of HK$20.05 to HK$20.50 (US$2.59-US$2.65) per share that could raise between US$1.03 billion and US$1.06 billion, according to the deal’s term sheet seen by the Post. The range works out to a discount of 6 per cent to 8 per cent to its closing price of HK$21.80 on Tuesday.
The pricing is likely to be determined by Wednesday morning, according to a person familiar with the transaction, who said the book has been fully covered. Credit Suisse and Citigroup, the joint placing agents for the deal, were not immediately available for comment.
Part of proceeds from the share sale will be used to further develop the company’s digital infrastructure, the person said.
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