Here's Why Alibaba Dumped Its Fundraising Plans

  • Alibaba Group Holding Ltd BABA discussed raising at least $1 billion for Lazada before calling off negotiations when talks bogged down over the Southeast Asian online mall's valuation, Bloomberg reports.
  • Alibaba had aimed to secure financing for Lazada ahead of its spinoff and a potential initial public offering.
  • Alibaba ditched the fundraising plan due to a lack of immediate requirement to avoid the volatile market, given shrinking valuations for tech companies from New York to Hong Kong. 
  • Related Content: More Trouble Brews For Alibaba's Jack Ma, Here's Why Jefferies Sees More Alibaba Stake Sale By SoftBank
  • Alibaba is rooting for overseas growth as its home market cools and Beijing's Covid Zero policy continues to depress consumption across the world's second-largest economy.
  • Alibaba had outlined a long-term goal of quintupling Lazada's gross merchandise value.
  • Price Action: BABA shares traded higher by 1.57% at $114.70 premarket on the last check Wednesday.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: NewsIPOsTechMediaBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!