India, Aug. 24 -- Alibaba Group has raised HK80$ (10.2 billion) through a new share sale in Hong Kong. The money will be used entirely to expand the company's AI infrastructure, Alibaba said. The deal closed on Sunday and is the largest follow-on share offering in Hong Kong. It is also Hong Kong's biggest share sale since Prosus sold $14.7 billion worth of Tencent shares in 2021.

The company sold 710 million shares at HK$112.70 each. The price was 3.6% lower than Alibaba's US-listed share price at Friday's close. The deal attracted strong demand from institutional investors. Demand was around three times the number of shares available, people familiar with the deal told Bloomberg.

Alibaba shares fell 8.5% in Hong Kong on Monday. This wa...