Alibaba said: 'the board of Directors proposes to split the equity to increase the flexibility of the company in future capital market activities. In addition, a 1:8 split of common shares will increase the number of shares available for issuance at a lower price per share. The Board believes that this will increase the flexibility of the company's fund-raising activities, including the issuance of new shares. "
Alibaba, an e-commerce giant, has applied for a spin off of its common shares, which aims to improve its flexibility in financing activities and issuing new shares and attract new investors. It is reported that the shareholders of the company will vote on this move at the annual general meeting held in Hong Kong on July 15. If approved, the change will take another year to take effect.