Alibaba Health new share sale raises US$1.3 billion in biggest ever Hong Kong health care placement
- Alibaba Group’s flagship health care platform upsizes placement by a quarter to 498.8 million shares amid strong demand
- Company plans to expand its online drug sales as demand for its services surged during the coronavirus pandemic in China
At US$1.3 billion, it is the largest ever follow-on share sale by a health care company in Hong Kong, surpassing CSPC Pharmaceutical Group’s US$1.26 billion follow-on offering in April 2015, data from Refinitiv shows.
The flagship health care platform of Alibaba Group Holding’s initial 400 million new shares offer was raised by a quarter to 498.8 million, which stands as 3.85 per cent of the firm’s outstanding share capital, according to a filing with the Hong Kong stock exchange on Wednesday.
The share sale was priced at HK$20.05 each, at the low end of the tight indicative range set at HK$20.05 to HK$20.50 (US$2.59 to US$2.65). The final price represents a discount of about 8.03 per cent to Tuesday’s closing price of HK$21.8.
The offer was “multiple times” oversubscribed, according to a person familiar with the transaction.
