Alibaba will sell $200 million in shares tomorrow.

According to Reuters, Chinese e-commerce giant Alibaba Group Holding Ltd is going to sell a 3% share in meal delivery platform Zomato Ltd for $200 million in a block deal. According to rumours, the deal's broker would be Morgan Stanley on Wall Street.

Alibaba

The block trade is likely to take place wednesday, and the shares may be offered at a 5-6% discount to today's close price. Zomato shares finished 1.63% down on the NSE on Tuesday, at 63.35 per share, compared to the previous day's close.

As of September 30, the Chinese conglomerate owned 12.98% of Zomato.

Startup sold its 7.8% ownership in Zomato in a block offer on local markets for $392 million.

The block transaction comes months after Zomato's one-year lock-in term for pre-IPO stockholders expired on June 23, 2022. The expiration of the lock-in period boosts the market supply for tradeable Zomato shares.

Zomato raised $9,375 crore in an IPO at an offer price of 76 per share and went public on the stock markets on July 23, 2017.

The price peaked at 159.75 in November 2021 and has since fallen, owing to a global downturn in technology companies.

Rising interest rates & foreign investors selling developing market shares have caused a severe halt in the availability of free money, which has allowed IT businesses to flourish at a breakneck speed.

Zomato's share price has dropped by more than 55% in 2022, despite the food giant's recent revenue rise.

Revenue from operations grew to 1,661.3 crore in the July-September quarter, up from 1,024.2 crore in the previous fiscal year's similar period.

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