(FinancialPress) — Following a record-setting rise of 100% in its value through 2017, several entities tied to Alibaba Group Holdings (NYSE: BABA) founder Jack Ma and executive vice chairman Joe Tsai have filed to sell up to 21.5 million company shares.
The company closed the last session with a 2% rise, yet experienced a 0.5% loss in after hours trading.
The move is part of a planned sale program “wealth planning and to meet philanthropic commitments“, according to the 10b5-1 filing to the Securities and Exchange Commission filing, posted on Alibaba‘s website on Sept. 13th. You can find an excerpt below:
“JC Properties Limited and JSP Investment Limited, entities affiliated with Jack Ma, founder and executive chairman of Alibaba Group Holding and The Jack Ma Philanthropic Foundation … adopted a pre-arranged share sales plan … for the sale of up to 16 million shares of the Company over a 12-month period commencing in October 2017. The 16 million shares of the Company represent approximately 9% of the holdings under Mr. Ma’s beneficial ownership.
PMH Holding Limited and Parufam Limited, entities affiliated with Joseph C. Tsai, executive vice chairman of the company, and Joe and Clara Tsai Foundation, the philanthropic foundation affiliated with Mr. Tsai, have adopted a pre-arranged share sales plan … for the sale of up to 5.5 million shares of the Company over a 12-month period commencing in October 2017. The 5.5 million shares of the Company represent approximately 8% of the holdings under Mr. Tsai’s beneficial ownership.”
The sale will represent a value of approximately $4 billion. While an imposing number, it represents less than 10% of Ma and Tsai‘s holdings, and is a very small portion of the company‘s $443 billion market cap.