JD-SW (09618.HK) -4.800 (-3.509%) Short selling $175.83M; Ratio 12.938% (JD.US) announced that it is proposing to offer convertible senior notes in an aggregate principal amount of US$1.5 billion due June 2029. The company plans to use the net proceeds for share repurchases, expanding overseas business, further improving the supply chain network, and working capital needs.
Subject to market conditions and other factors, JD intends to grant an option to the initial purchasers in the notes offering, exercisable within 30 days beginning on and including the date of the offering, to purchase up to an additional US$225 million in aggregate principal amount of the notes.
Concurrently with the pricing of the notes, JD plans to repurchase a number of its Class A ordinary shares and/or ADSs (amount to be determined at the time of pricing of the notes) from certain purchasers of the notes in off-market privately negotiated transactions effected through one of the initial purchasers or its affiliates, as the company’s agent.
The concurrent repurchase is expected to facilitate the initial hedging by purchasers of the notes who desire to hedge their investments in the notes, as the company intends to repurchase the entire initial delta of the transaction. This will allow such purchasers of the notes to establish short positions that generally correspond to commercially reasonable initial hedges of their investments in the notes.
The concurrent repurchase will be made pursuant to JD’s share repurchase program announced in March 2024. In addition to the concurrent repurchase, the company may also repurchase additional Class A ordinary shares and/or ADSs on the open market after the pricing of the notes and from time to time.
JD's ADS last printed at US$32.93 in pre-market, plummeting over 5%.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-05-21 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)
