10:13 AM EDT, 05/21/2024 (MT Newswires) -- JD.com ( JD ) said Tuesday it has priced an offering of $1.75 billion of its convertible senior notes to qualified institutional buyers.

The offering, which was upsized from the initial $1.5 billion, is set to close around Thursday.

The initial conversion rate of the notes is 21.8830 American depositary shares per $1,000 principal amount of the notes, which is equivalent to an initial conversion price of about $45.70 per ADS. Each ADS represents two class A ordinary shares.

Initial purchasers have been granted an option to buy up to an additional $250 million in principal amount of the notes.

Meanwhile, the company also said it plans to repurchase about 14 million ADSs from certain note purchasers through a concurrent repurchase plan.

Net proceeds from the notes offering are to be used to fund the repurchase plan, to fund overseas business, to support the company's supply chain network, and for working capital needs, the company said.

Shares of JD.com ( JD ) were down more than 3% in recent Tuesday trading.

Price: 33.44, Change: -1.31, Percent Change: -3.77