Alibaba Pic­tures to raise $1.6 bil­lion

Los Angeles Times - - BUSINESS BEAT - By Julie Maki­nen julie.maki­nen@la­times.com

BEI­JING — Alibaba Pic­tures Group, the film sub­sidiary of Chi­nese e-com­merce be­he­moth Alibaba Group Hold­ing Ltd., said Thurs­day that it would is­sue new shares to raise $1.6 bil­lion to fund ac­qui­si­tions and in­vest­ments.

The com­pany saw its stock price surge more than 100% this spring amid a gen­eral rally in Chi­nese mar­kets and a par­tic­u­lar in­ter­est in me­dia shares.

But the stock price has re­cently fallen back. The new 4.2 bil­lion shares rep­re­sent 20% of Alibaba Pic­tures’ en­larged share base and were sold at a 20% dis­count; the com­pany now has a mar­ket cap­i­tal­iza­tion of about $8.8 bil­lion.

In a state­ment, the com­pany said it in­tended to use the pro­ceeds of the stock sale for “gen­eral work­ing cap­i­tal pur­poses” and “to fi­nance po­ten­tial ac­qui­si­tions aris­ing out of me­dia-re­lated in­vest­ment op­por­tu­ni­ties.”

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