On May 21, Convergence Technology (01729.HK) fell 5.04% in regular trading, trading at HK$18.46/share, with trading volume of HK$320 million.
On the news front, the company completed its share placement on May 19, issuing 138 million new shares at HK$21.00 per share to no fewer than six placees, representing approximately 6.19% of the enlarged share capital, with net proceeds of approximately HK$2.885 billion. The placement price represented a discount of about 13.58% to the prevailing market price at the time of announcement. The current stock price has fallen significantly below the HK$21.00 placement price, widening the unrealized losses for placees and intensifying market concerns over equity dilution.
Additionally, disclosure on the same day showed that a shareholder deposited shares into The Hongkong and Shanghai Banking Corporation, with a deposited market value of approximately HK$2.803 billion. Despite the company previously reporting strong annual results with significant revenue and profit growth, the selling pressure generated by the heavily discounted placement continues to weigh on the share price.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
Comments