Here's Why Alibaba Dumped Its Fundraising Plans

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  • 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.
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