Alibaba (BABA, Financial) recently announced a significant share repurchase, acquiring 1.6332 million shares for approximately $19.9728 million. The buyback prices ranged between $12.18 and $12.29 per share. This move is part of Alibaba's ongoing commitment to its share repurchase program.
During the quarter ending September 30, 2024, Alibaba repurchased a total of 414 million ordinary shares, equivalent to 52 million American Depositary Shares (ADS), for $4.1 billion. The repurchases were executed on both the U.S. and Hong Kong markets as a part of the company's strategic plan. As of September 30, 2024, Alibaba's outstanding ordinary shares decreased by 405 million, reflecting a reduction rate of 2.1% from June 30, 2024. The authorized buyback program still has $22 billion remaining, set to expire in March 2027.
In the first quarter of fiscal 2025, Alibaba has spent $5.8 billion to repurchase 613 million ordinary shares, intensifying its buyback efforts compared to previous quarters. For the fiscal year 2024, Alibaba invested $12.5 billion in buybacks, making it the leading Chinese stock in terms of repurchase volume. As of June 30, 2024, the company had $26.1 billion left in its buyback budget, available until March 2027.
Additionally, Alibaba has been included in the Stock Connect program, facilitating purchases by southbound funds. This inclusion follows adjustments in the Hang Seng Composite Index, effective from September 10, 2024. As of September 9, 2024, Alibaba and several other companies were newly eligible for the Stock Connect, allowing greater access to the Hong Kong stock market.
Notably, Alibaba became the first beneficiary of the Hang Seng Index's new rule, after its dual primary listing on both the New York Stock Exchange and the Hong Kong Stock Exchange was completed on August 28, 2024, qualifying it for the index under the revised criteria.
