Beijing Enlight Media Co's Shenzhen-listed shares surged by the daily limit of 10 percent yesterday after it said it would sell 2.8 billion yuan (US$447 million) worth of new shares in a private placement to investors, including an investment firm affiliated to e-commerce giant Alibaba Group.
Enlight Media said the new shares would be sold at 24.22 yuan each, the company said in a stock exchange filing.
Enlight Media closed at 33.11 yuan.
Alibaba Capital would subscribe to 2.4 billion yuan worth of the new shares to become the second-largest shareholder of the film and TV production firm after the completion of the deal.
Enlight Media's parent company Shanghai Enlight Media Investment Co, currently its biggest shareholder, will invest 400 million yuan in the listed company.
Enlight Media received approval from the China Securities Regulatory Commission to conduct the private placement in late February.
Elsewhere, Alibaba's cloud computing subsidiary Aliyun said it has officially started operating a data center in the Silicon Valley in the US as it continues to grow overseas.