JD Logistics, a Chinese logistics company, priced new shares issued in a $1.1 billion capital raising on Friday at a substantial discount to their previous level, causing its stock to fall sharply early in the Hong Kong trading day.
JD Logistics raised $1.09 billion on Friday by pricing the shares at HK$20.71 each, a 10% discount to Thursday’s closing price. In early Friday trading, the shares plunged as much as 11% to HK$20.35.
The transaction included a $700 million share placement to JD.com’s parent firm, as well as a $400 million main share sale.
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Telenor will be paid over the following five years for the sale of its Myanmar operations. Telenor’s first-quarter results would show a cumulative loss of around 800 million crowns.
It was also the third-largest follow-on deal in Asia this year and the fifth-largest overall. Despite continuous instability in regional equity markets, the company decided to sell its shares.
JD Logistics stated that the funds generated would be used to help fund possible acquisitions and increase cash reserves.
After Friday’s finish, Australian stocks were up. The S&P/ASX 200 gained 0.26 percent at the close in Sydney. The price of gold futures for April delivery fell 0.32 percent.
This was the company’s first public offering since its first public offering on the Hong Kong Stock Exchange. The AUD/USD exchange rate remained at 0.75, unchanged by 0.13 percent.
The Australian dollar declined 0.60 percent against the Japanese yen. Futures on the US Dollar Index were down 0.22 percent.
The money will be used to support possible acquisitions and boost cash reserves. It also came amid persistent stock market turbulence in the Asia Pacific. The Hong Kong shares of JD Logistics fell 13.04 percent.
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