Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/alibaba-group-holding-limited" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba (9988 HK)</a>  is looking to raise around US$10bn to fund its AI spending.</li>
<li>
<a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba (BABA US)</a> recently reported its 1H26 results, with elevated AI capex and negative free cash flows.</li>
<li>In this note, we will talk about the placement and run the deal through our ECM framework.</li>
</ul>



Alibaba (9988 HK)  is looking to raise around US$10bn to fund its AI spending.

Alibaba (BABA US) recently reported its 1H26 results, with elevated AI capex and negative free cash flows.
In this note, we will talk about the placement and run the deal through our ECM framework.


Aequitas: Alibaba Placement - US$10bn Raising, Relatively Ok Size, Index Flows

Equity Long-Short

Mo Aziz

Equity Bottom-Up

<ul>
<li>EPS miss (non-GAAP US$1.26 vs US$1.50) is discrete: AI Labs RMB13.9bn EBITA loss, peaked QoQ per management; EC DSA fine; RMB4.5bn goodwill impairment.</li>
<li>AI Cloud +45% YoY; segment EBITA +133%; AI revenue reaches 35% of external cloud — twelfth consecutive quarter of triple-digit growth.</li>
<li>Maintain BULLISH, with unchanged FV US$170/ADS &amp; HK$166 — SOTP-derived: commerce 8x FY27F EBITA, cloud 4x FY27F EV/Sales, 10% geopolitical discount. </li>
</ul>


EPS miss (non-GAAP US$1.26 vs US$1.50) is discrete: AI Labs RMB13.9bn EBITA loss, peaked QoQ per management; EC DSA fine; RMB4.5bn goodwill impairment.
AI Cloud +45% YoY; segment EBITA +133%; AI revenue reaches 35% of external cloud — twelfth consecutive quarter of triple-digit growth.
Maintain BULLISH, with unchanged FV US$170/ADS &amp; HK$166 — SOTP-derived: commerce 8x FY27F EBITA, cloud 4x FY27F EV/Sales, 10% geopolitical discount. 


Alibaba Group (BABA US / 9988 HK) Q1 FY2027 Results Review — Cloud Holds; AI Investment Drag Peaks

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>Alibaba Group Holding Limited is advancing another major portfolio simplification as its Lingxi Games business moves toward new ownership under Asian private-equity firm Trustar Capital.</li><li>The latest development goes beyond preliminary acquisition interest: Alibaba has reached an agreement to sell Lingxi Games, with reports indicating a valuation of more than $1.5 billion, although the final consideration has not been publicly disclosed.</li><li>Lingxi Chief Executive Zhou Bingshu described the transaction as part of Alibaba’s broader effort to sharpen its strategic focus, while the company continues directing more capital toward artificial intelligence, cloud infrastructure, e-commerce and consumption.</li></ul>

Alibaba Group Holding Limited is advancing another major portfolio simplification as its Lingxi Games business moves toward new ownership under Asian private-equity firm Trustar Capital.The latest development goes beyond preliminary acquisition interest: Alibaba has reached an agreement to sell Lingxi Games, with reports indicating a valuation of more than $1.5 billion, although the final consideration has not been publicly disclosed.Lingxi Chief Executive Zhou Bingshu described the transaction as part of Alibaba’s broader effort to sharpen its strategic focus, while the company continues directing more capital toward artificial intelligence, cloud infrastructure, e-commerce and consumption.

Why Alibaba’s Lingxi Games Acquisition Is Drawing Attention!

Derivatives and Quantitative Strategist

Gaudenz Schneider

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/alibaba-group-holding-limited" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba (9988 HK</a>, <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">BABA US) </a>will report its June Quarter 2026 results on 20 August and hold its conference call at 7:30 p.m. Hong Kong time.</li>
<li>
Highlights: HK-listed options imply a move broadly in line with Alibaba’s historical earnings-day median, while U.S.-listed options price a materially larger move than historical averages.</li>
<li>
Why Read: Gain insight into Alibaba’s HK-listed earnings-day price history, divergent US/HK pricing, volatility term structure, and index implications ahead of the upcoming results announcement.</li>
</ul>



Alibaba (9988 HK, BABA US) will report its June Quarter 2026 results on 20 August and hold its conference call at 7:30 p.m. Hong Kong time.

Highlights: HK-listed options imply a move broadly in line with Alibaba’s historical earnings-day median, while U.S.-listed options price a materially larger move than historical averages.

Why Read: Gain insight into Alibaba’s HK-listed earnings-day price history, divergent US/HK pricing, volatility term structure, and index implications ahead of the upcoming results announcement.


Alibaba (9988 HK / BABA US) Earnings on 20 Aug: HK and US Options Diverge

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>HK Alpha portfolio gained 2.22% in September, outperforming its benchmark by 5.36%. Since inception, the portfolio has outperformed HK indexes by 66% to 93%. HK ALPHA is up 14.35% YTD.</li>
<li>The Sharpe ratio stands at 1.22, compared with a benchmark of 0.56 since inception. This higher Sharpe ratio is driven by excess alpha, which represents more than 50% of returns.</li>
<li>The portfolio gained in the healthcare and energy sectors in August, while exposure to materials and communication services dragged on performance.</li>
</ul>


HK Alpha portfolio gained 2.22% in September, outperforming its benchmark by 5.36%. Since inception, the portfolio has outperformed HK indexes by 66% to 93%. HK ALPHA is up 14.35% YTD.
The Sharpe ratio stands at 1.22, compared with a benchmark of 0.56 since inception. This higher Sharpe ratio is driven by excess alpha, which represents more than 50% of returns.
The portfolio gained in the healthcare and energy sectors in August, while exposure to materials and communication services dragged on performance.


HONG KONG ALPHA PORTFOLIO: (September 2026)

China

Alibaba Group Holding Limited provides online sales services. The Company provides internet infrastructure, electronic commerce, online financial, and internet content services through its subsidiaries. Alibaba Group Holding offers its products and services worldwide.

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Alibaba (BABA US)

Aequitas: Alibaba Placement - US$10bn Raising, Relatively Ok Size, Index Flows

Alibaba (9988 HK) is looking to raise around US$10bn to fund its AI spending. In this note, we talk about the deal dynamics.

Sumeet Singh

Alibaba Group (BABA US / 9988 HK) Q1 FY2027 Results Review — Cloud Holds; AI Investment Drag Peaks

EPS miss = AI Labs drag (peaked QoQ) + EC fine + write-off. But Cloud +45% confirmed and investment thesis is intact. Buy the consensus cuts....

Mo Aziz

Why Alibaba’s Lingxi Games Acquisition Is Drawing Attention!

Alibaba Group Holding Limited is advancing another major portfolio simplification as its Lingxi Games business moves toward new ownership under...

Baptista Research

Alibaba (9988 HK / BABA US) Earnings on 20 Aug: HK and US Options Diverge

Update: Alibaba’s front-end volatility has repriced sharply. The 21 Aug HK expiry now trades near 90% IV, implying a 5.8% move, while US-listed...

Gaudenz Schneider

HONG KONG ALPHA PORTFOLIO: (September 2026)

HK Alpha portfolio gained 2.22% in September, outperforming its benchmark by 5.36%. Since inception, the portfolio has outperformed HK indexes by...

David Mudd

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