Alibaba Insider Buying Fails To Erase Dilution Fears Arabian Post

(MENAFN- The Arabian Post) clearfix"> Alibaba Group Holding's powerful insiders have stepped in to buy shares after its $10.2 billion equity placement, but their show of confidence has done little to settle investor unease over dilution and the rising cost of the company's artificial intelligence ambitions.

Founder Jack Ma bought more than HK$600 million worth of Alibaba's Hong Kong-listed shares over consecutive trading days, while chairman Joe Tsai and chief executive Eddie Wu together purchased more than HK$200 million of stock. The buying helped shares recover modestly after the placement triggered their sharpest setback in months, but the stock remained well below levels preceding the deal.

Alibaba priced 710 million new shares at HK$112.70 each, raising HK$80 billion, or about $10.2 billion. The price represented an 8.4% discount to the August 21 Hong Kong close of HK$123 and increased the company's outstanding share count by roughly 3.7%.

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