FILE PHOTO: A logo of Alibaba Group is seen at the company’s headquarters in Hangzhou, Zhejiang province, China, November 18, 2019. REUTERS/Aly Song
HONG KONG (Reuters) – Chinese healthcare services firm Alibaba Health Information Technology has raised nearly $1.3 billion in Hong Kong’s largest follow-on share sale in five years, according a statement from the company on Wednesday.
The company will issue 499 million new shares priced at $HK20.05 apiece, an 8% discount to the stock’s HK$21.80 closing price on the Hong Kong exchange on Tuesday.
The final price was at the low end of the flagged HK$20.05 to HK$20.50 range when the deal was launched earlier on Tuesday.
Alibaba Health, an arm of internet retail giant Alibaba Group, said the cash would be used to develop the company’s pharmaceutical e-commerce business, which has benefited from the growth of the online service sector during the coronavirus pandemic this year.