Alibaba Group ADR shares decline over 4% during pre-market hours; focus on AI plans after $10 billion new issue

Alibaba Group ADR shares declined more than 4% during pre-market hours on Monday, August 24, as investors focused on the company’s artificial intelligence (AI) plans after the $10 billion new share issue on the Hong Kong stock exchange.

MarketWatch data showed that during the pre-market hours on the NYSE, Alibaba Group Holdings ADR shares lost 4.1% to $114.35 apiece on Monday’s session, in comparison to $119.34 apiece at the previous equity market close.

After the opening bell, Alibaba Group Holdings ADR shares declined 2% to $117.07 apiece on Monday’s market, in comparison to $119.34 apiece at the previous US equity market close.

$10 billion offering

Alibaba Group Holdings raised around $10.2 billion in Hong Kong through one of the largest follow-on public offerings as the firm aims to spend the funding towards progress in artificial intelligence (AI).

According to a Bloomberg report, Alibaba sold 710 million equity shares at HK$112.70 apiece, marking an 8.4% discount to the company’s previous equity market close levels.

The new ordinary equity share issue adds to the existing outstanding share base, while the discounted price of the same is expected to weigh down on investors' sentiment over the year-term.

The company said that all the proceeds raised from the new ordinary shares issue will be entirely used towards funding the company’s artificial intelligence (AI) capabilities, as the spending is expected to cover AI infrastructure and other investments towards the development of full-stack AI operations.

How have Alibaba shares performed?

Alibaba’s primary shares listed on the Hong Kong stock exchange have lost more than 27% of their value in the last five years, and over 9% of their value in the last one-year period, according to the exchange data.

On a year-to-date basis, Alibaba’s stock has declined 24% in 2026, but the company's shares were up 2.2% in the past one-month period, according to the exchange data. The company’s stock has lost 7.7% in the last five market sessions.

After the trading session on Monday, August 24, Alibaba Group Holding shares have declined 8.5% to end at HK$112.50 apiece, compared to HK$123 apiece at the previous equity market close, as per the exchange data.