Alibaba Health raises $1.3 bn in Hong Kong's secondary share sale

The size of the deal was increased by 25% during the institutional bookbuild overnight on high demand from investors

Alibaba Health Information Technology has raised nearly $1.3 billion in Hong Kong's largest follow-on share sale since 2015, and industry experts say this could prompt more firms to tap investors for cash in the Asian financial hub.

The Chinese company, an arm of internet retail giant Alibaba Group, said on Wednesday it would issue 499 million new shares priced at HK$20.05 ($2.59) apiece, an 8% discount to the stock's HK$21.80 closing price in Hong Kong on Tuesday.

Alibaba Health shares were down 2.75% at HK$21.20 in the first session since the deal was finalised.

The size of the deal was