Alibaba-SW adjusts the conversion rate of convertible preferred notes
Alibaba-SW recently announced that due to the dividend adjustment in 2024, the conversion rate of its convertible preferred notes will be adjusted starting from June 13, 2024. The conversion of every $1000 principal amount of notes into 9.5202 American Depositary Shares will be changed to 9.7271 shares; the maximum conversion rate will be adjusted from 12.3762 shares to 12.6452 shares. The total number of ordinary shares the company can issue has been increased from 495 million shares to 506 million shares, and an application has been made to the Hong Kong Stock Exchange for additional ordinary shares listing and trading approval
According to the announcement released by Alibaba-SW (09988) on the Zhitong Finance and Economics APP, due to the dividend declaration in 2024, based on the terms and conditions of the notes, effective from June 13, 2024, the initial conversion rate of the notes, from every $1,000 principal amount of notes convertible into 9.5202 American Depositary Shares, has been adjusted to 9.7271 American Depositary Shares per $1,000 principal amount of notes; while the maximum conversion rate of the notes (taking into account the adjustment for early redemption in the event of specific company events disclosed in the notes announcement), has been adjusted from every $1,000 principal amount of notes convertible into 12.3762 American Depositary Shares to 12.6452 American Depositary Shares per $1,000 principal amount of notes.
Following the above adjustments, the total number of ordinary shares (including in the form of American Depositary Shares) that the company can issue after full conversion of the notes (taking into account the adjustment for early redemption in the event of specific company events disclosed in the notes announcement) has increased from 495 million shares to 506 million shares. The company has submitted an application to the Hong Kong Stock Exchange for the listing and trading approval of the additional ordinary shares.
For the avoidance of doubt, all other terms and conditions of the notes remain unchanged