Alibaba Group Holding Limited (NYSE: BABA) is aiming to increase at least $5 billion through the sale of US dollar-denominated bonds this month. The investors have shown positive sentiments following the announcement. The e-commerce giant is anticipated that the profit would reach up to $ 8 billion.
Alibaba Limited is planning to use the revenue from the bond sale to use for general corporate spending. This mega offer will be the test of BABA’s investors’ loyalty towards the company after Beijing has initiated an antitrust inquiry into the e-commerce giant.
Recently, social media has sparked speculation about the whereabouts of Jack Ma, the co-founder of BABA in this difficult time. Jack Ma is nowhere to be seen after his provocative speech. He alleged that the regulators are hindering the company’s way towards innovation.
Alibaba Group Holding Limited (NYSE: BABA) shares traded up 5.51% during the trading session of Tuesday. In the past 52-weeks of trading, this firm share fluctuated between the 52-weeks low range of $169.95 and a high range of $319.32. It has moved up 41.45% from its 52-weeks low and moved down to -24.72% from its 52-weeks high. BABA has a total market capitalization of $666.25 billion
On October 24, he presented a provocative speech in which he branded the Chinese banking rules and process to be analogous to that of an "old people's club". The Ant business of Jack Ma is subject to a rigorous inspection by Chinese administrators. The rigorous inspection has also halted the $37 billion stock market listing of Ant Group.
Chinese officials are also examining whether to order the company to cut the equity investment in lots of firms or not. This new bond sale offer is a surprise to investors in this rigorous time. Alibaba has not commented on this yet. According to the informants, the bond sale plan is not yet finalized and there are chances that it might change.