A little-known unit of Alibaba Group Holding Ltd. Take advantage of a sudden meltdown on their stock to raise a whopping $ 1.4 billion.
Alibaba Health Information Technology Ltd. said Tuesday that it will sell new shares intended to finance the purchase of some health-related assets from the parent company, the Chinese retail giant Alibaba. While the issue price – at HK $ 5.80 a share – is technically a good deal compared to Monday at HK $ 6.77 in Hong Kong, a mysterious 52 percent rally follows since May 1
The growth has made Ali Health, which made losses last year, the best value of the MSCI Asia Pacific Index this month. The shares, which on most days of last week repeatedly generated more revenue than most of Hong Kong's largest companies, had not been traded at the issue price in nearly two years. They rose up to 12 percent to HK $ 7.5 on Tuesday.
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Ali Health was covered by a single stock analyst earlier this month. Alibaba Pictures Group Ltd., another unit of the retail group, rose 32 percent for no apparent reason on May 24 as shoppers on the mainland became more frequent.