China based provider of healthcare services Alibaba Health Information Technology sold its shares in the Hong Kong market which fetched it around $1.3 billion. The sale was conducted on August 4 in the market which acts as the secondary market for the parent company Alibaba Group Holding (BABA).
The company issued 499 million shares priced at $HK20.05 per share which represented an 8% share discount of share closing price in the previous day of HK$21.80.
Alibaba health says it will use the proceeds to develop and integrate the company’s pharmaceutical e-commerce business. The e-commerce business has been experiencing unusually high orders during the pandemic period.
A higher than expected demand from investors resulted to size of the deal being changed to 25% during an institutional book build.