Alibaba Group Holding Limited, a prominent global e-commerce conglomerate, has successfully completed a private offering of US$5 billion in Convertible Senior Notes due in 2031. The offering, which concluded on May 30, 2024, included the full exercise of an option by initial purchasers to acquire an additional US$500 million in notes. This move was accompanied by capped call transactions intended to minimize potential dilution to Alibaba's American Depositary Shares (ADSs) and ordinary shares upon conversion of the notes. The transactions are expected to effectively raise the conversion premium from 30% to 100% based on the ADSs' last reported sale price on the NYSE as of May 23, 2024. The notes were made available to qualified institutional buyers in the United States under Rule 144A and to...Show More

Alibaba Group Holding Limited, a prominent global e-commerce conglomerate, has successfully completed a private offering of US$5 billion in Convertible Senior Notes due in 2031. The offering, which concluded on May 30, 2024, included the full exercise of an option by initial purchasers to acquire an additional US$500 million in notes. This move was accompanied by capped call transactions intended to minimize potential dilution to Alibaba's American Depositary Shares (ADSs) and ordinary shares upon conversion of the notes. The transactions are expected to effectively raise the conversion premium from 30% to 100% based on the ADSs' last reported sale price on the NYSE as of May 23, 2024. The notes were made available to qualified institutional buyers in the United States under Rule 144A and to certain non-U.S. persons in offshore transactions under Regulation S. The initial conversion rate is set at 9.5202 ADSs per US$1,000 principal amount, which equates to an initial conversion price of about US$105.04 per ADS. Alibaba has stated that the notes, the ADSs, and the ordinary shares have not been registered under the Securities Act or any state securities laws and are being offered only to qualified buyers. The company reiterated its mission to facilitate business globally and to build the future infrastructure of commerce, aiming to be a lasting enterprise for over a century.