Alibaba Group Holding confirmed in regulatory filing that it is proposing a one-to-eight stock split for vote at its annual general meeting to be held on June 15. “The purpose of the Subdivision Proposal is to effect a one-to-eight share subdivision of the Ordinary Shares. The Board of Directors is proposing the Share Subdivision to increase the flexibility for the Company in future capital market activities. Among other reasons, the one-to-eight share subdivision will increase the number of shares available for issuance at a lower per-share price, and the Board of Directors believes that this will increase flexibility in the Company’s capital raising activities, including the issuance of new shares,” Alibaba explained. Shares of Alibaba are up $2.48 to $162.33 in early trading.
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