JD.com's shares plummeted as Walmart, the largest retailer in the United States, seeks to sell its stake in JD.com in an effort to raise up to US$3.74 billion.

According to Bloomberg, Walmart will sell 144.5 million shares at a price range of $24.85 to $25.85 per share. Morgan Stanley is the underwriter of this offering. Bloomberg first disclosed the plan on Tuesday (August 20, 2024) in the United States, citing people familiar with the matter. JD.com's US-listed shares fell 10% to $25.5 in after-hours trading, and JD.com's Hong Kong stocks fell more than 12% in early trading on Wednesday (August 21).

Data shows that Walmart holds a 5.19% stake in JD.com and is JD.com's largest shareholder. The cooperation between the two companies began in 2016 when Walmart sold its "No. 1 Store" to JD.com. Bloomberg's report pointed out that this share sale marks the end of the partnership between the two companies.

According to Reuters, Walmart said in a statement that JD.com has been an important partner for the past eight years and the US retailer is committed to continuing its business relationship with the Chinese e-commerce giant. The decision to sell the stake allows Walmart to focus on the strong operations of Walmart China and Sam's Club in China and deploy capital to other priorities.