UPDATE raises $3.87 bln in Hong Kong secondary listing -sources

(Adds deal background and NetEase share trading start)

HONG KONG, June 11 (Reuters) - Chinese e-commerce retailer has priced its shares at HK$226 ($29.16) each and raised about $3.87 billion in its Hong Kong secondary listing, according to two people with direct knowledge of the matter.

The listing, the biggest in the city this year, comes as Chinese companies are putting off plans for U.S. listings amid mounting tensions between the world’s top two economies, while those listed in New York are seeking to return to exchanges closer to home., which is already listed on the Nasdaq in New York, had previously flagged it would sell 133 million shares.

Under the terms of the deal, one of’s American depository shares will be equal to two Hong Kong shares.

That means the Hong Kong price represents a 3.9% discount to the firm’s closing share price of $60.07 on the Nasdaq on Wednesday. The retail portion of the deal is open until noon Hong Kong time.

The pricing comes as shares in Chinese online gaming firm NetEase began trading in Hong Kong on Thursday after raising $2.7 billion in its secondary listing there.

NetEase shares were at $HK133.5 versus the HK$123 issue price. stock will begin trading on June 18 which coincides with the company’s annual sales festival.

The company can also sell an extra 19.95 million shares as part of the so-called ‘green shoe’ option and has thirty days to make that decision. Exercising that option would raise an extra $522.5 million. did not immediately respond to a request for comment.

The people could not be named as the information is confidential. ($1 = 7.7506 Hong Kong dollars) (Reporting by Scott Murdoch; Editing by Ana Nicolaci da Costa)