Alibaba Pictures plans HK$12.2b share sale amid market rally

Alibaba Pictures Group Ltd. plans to raise HK$12.2 billion (S$2.11 billion) selling shares in Hong Kong to help finance potential acquisitions. -- PHOTO: REUTERS 
Alibaba Pictures Group Ltd. plans to raise HK$12.2 billion (S$2.11 billion) selling shares in Hong Kong to help finance potential acquisitions. -- PHOTO: REUTERS 

HONG KONG (Bloomberg) - Alibaba Pictures Group Ltd. plans to raise HK$12.2 billion (S$2.11 billion) selling shares in Hong Kong to help finance potential acquisitions.

The company will sell 4.2 billion shares at HK$2.90 apiece, Alibaba said in a statement to the Hong Kong stock exchange. That's 20 per cent lower than the stock's last close. Credit Suisse Group AG and Morgan Stanley are arranging the sale.

The movie company, a unit of e-commerce giant Alibaba Group Holding Ltd., is taking advantage of a share rally in the region that's helped the stock surge more than 160 per cent this year. By comparison, the Hang Seng Composite Index has gained 19 percent in 2015.

It's not just the market. Alibaba Pictures saw its shares surge in April after saying that its parent group may inject some of its entertainment assets into the unit.

Alibaba shares have been suspended from trading since June 2 pending the release of the announcement. It last closed at HK$3.62 in Hong Kong.