Alibaba Group issued an announcement tonightdeuceswildforrealmoney, plans to issue US$4.5 billion in convertible senior notes due in 2031. The announcement shows that the main uses of the raised funds include: providing funds for the conclusion of limit and call transactions; and conducting simultaneous repurchase and future repurchase according to the existing share repurchase plan.
Among them, it is noteworthy that according to the announcement, the upper price of limit and call trading is expected to be 100% higher than the last transaction price of American Depositary Shares on the day of issuance and pricing of the note. It can be understood that Alibaba will buy a call option that will increase its own stock by about 100%, sending a strong bullish signal.
Market analysts pointed out that Alibaba has sufficient cash and a solid financial situation. Issuing convertible bonds is "developing itself in a smart way", pointing out that global leading technology companies such as Apple and Amazon are doing the same: as of the end of 2023, Alibaba's overall The asset-liability ratio is 37deuceswildforrealmoney.3%, much lower than Amazon's 61.8% and Apple's 79% during the same period. "This is good for shareholders, and it also means that Alibaba is optimistic about its own development prospects and is full of confidence in value improvement."
According to the announcement, simultaneous repurchase can facilitate investors 'initial hedging. In addition to simultaneous repurchases, the company may also conduct future repurchases after the bills are priced.
