Alibaba Group Holding Ltd (NYSE:BABA) is eyeing a convertible bond sale to raise close to $5 billion, taking a cue from rival JD.Com, Inc’s (NASDAQ: JD) move this week. Both stocks are trading lower on Thursday.

Alibaba discussed bond sales with investment banks. These bonds can be converted into US-listed stock to fund share repurchases and growth.

An offering could come by this week, Bloomberg cites familiar sources.

Also Read: Alibaba Rival PDD’s Explosive Growth Continues, Revenue More Than Doubles

Alibaba seeks funds to invest in its commerce and cloud businesses, both of which lost market share during the domestic regulatory crackdown. The company remains engaged in a price war with its contemporaries by slashing the prices of its cloud and artificial intelligence services while aggressively pursuing its AI ambitions.

In 2024, Alibaba ratified a share buyback expansion program.

Alibaba’s American depositary receipts shed 6.6% in the first three days of this week, pruning their year-to-date gain to 6.7%.

Meanwhile, reports indicated bearish sentiments of U.S. short sellers led to a selloff in Chinese stocks this week. Bearish bets on iShares China Large-Cap ETF hit a peak, pointing at a shift to non-China emerging markets.

Alibaba reported fiscal fourth-quarter 2023 revenue growth of 7% year-on-year to $30.73 billion, beating the analyst consensus of $30.40 billion. Adjusted earnings per ADS of $1.40 missed the analyst consensus of $1.41. 

BABA stock has lost 0.24% in the last 12 months. Investors can gain exposure to the stock via Tidal Trust II CoreValues Alpha Greater China Growth ETF (NYSE:CGRO) and ProShares Long Online/Short Stores ETF (NYSE:CLIX).

Price Action: BABA shares were trading lower by 1.72% at $81.26 in the premarket at the last check on Thursday.

Alibaba Photo Via Shutterstock