By Gina Lee
Investing.com – China’s JD (NASDAQ:JD) Logistics Inc. (HK:2618) has priced new shares for its HK$8.53 billion ($1.1 billion) capital increase. However, the shares were priced at a discount of about 10% to Thursday’s closing price of HK$23, with each share pricing at HK$20.71, according to a Hong Kong Exchange (HKEX) filing.
JD Logistics’ Hong Kong shares tumbled 13.04% to HK$20 by 12:32 AM ET (4:32 AM GMT).
The issuance was the company’s first since its listing on the Hong Kong Stock Exchange in May 2021. The funds will be used to fund potential acquisitions, as well as increase cash reserves, said the company. Bank of America Corp. (NYSE:BAC) and Goldman Sachs (NYSE:GS) were the deal’s joint book-runners.
The deal also consisted of a placement of about $700 million worth of shares to JD Logistics’ parent company, JD.com Inc. (HK:9618), and about $400 million in a primary share sale, according to Thursday’s filings. JD.com holds a 63.5% stake in JD Logistics .
Of stocks on offer, 80% went to the top 15 investors who bid during the bookbuild, a source with direct knowledge of the matter told Reuters.
The deal was the also first follow-on share sale in Hong Kong since Feb. 21 and was also the biggest since Sunac China Holdings Ltd.'s (HK:1918) $580 million top-up placement in January 2022. It is also the third-largest follow-on deal in Asia and fifth globally in 2022 to date, according to Refinitiv data.
It also comes came amid continued volatility in Asia Pacific shares, with Hong Kong’s Hang Seng Index down 6.5% in 2022 to date.