SenseTime (00020) saw its stock price drop by 3.05% during intraday trading on Thursday. The decline followed the company's announcement of a placing of 1.75 billion Class B shares at HK$1.80 per share.
The significant share placement is likely to dilute existing shareholders' stakes and increase the supply of shares in the market, which typically exerts downward pressure on the stock price. Investors reacted negatively to the news, leading to the observed decline.
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