By Scott Murdoch

(Reuters) –China’s JD (NASDAQ) Logistics priced shares in a capital increase of $1.1 billion at a substantial discount to the previous close on Friday. This caused a stock slump early in the Kong Kong trading sessions.

JD Logistics reported that the shares were priced at HK$20.71 per share, a discount about 10% from Thursday’s closing prices, in order to increase HK$8.53 trillion ($1.09 Billion) Friday. On Friday, shares fell as high as 11% to HK$20.35 in early trade.

According to documents filed on Thursday, the transaction consisted of placing approximately $700,000,000 worth of shares in JD.com’s parent company and $400,000 million in primary share sales.

It was Hong Kong’s first share sale following on from Feb. 21. The transaction also marks the highest since Sunac China’s $580 million top-up in January.

According to data from Refinitiv, it was the fifth-largest worldwide follow-on agreement in Asia.

Despite the ongoing volatility of regional equity markets and Hong Kong’s 6.5% decline this year, the share sale was completed.

According to the source, who did not wish to speak to the media, the 15% top bidders in the bookbuild got 80% of stock.

JD.com has not yet responded to my request for comment about the deal’s content.

JD Logistics stated that it will use the funds raised for potential acquisitions as well as to build its cash reserve.

($1 = 7.8232 Hong Kong dollars)