On May 26, Convergence Technology (01729.HK) fell 5.42% in regular trading, trading at HK$19.53/share, with trading volume of HK$133 million. The stock remains under sustained selling pressure following the completion of a discounted share placement.
On the news front, the company completed a placement on May 19, issuing approximately 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 current share price remains significantly below the HK$21.00 placement price, resulting in expanding paper losses for placees and intensifying market concerns over equity dilution and potential forced selling.
Although a brief rebound was observed on May 22 driven by optimism in the optical communication sector, the medium-term overhang from the placement has not been fully digested, and the stock has resumed its downward trajectory. The funds raised are intended for global business development, bank loan repayment, and strategic investments.
(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