Alibaba Pictures to raise $1.6 billion
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.”