Stock Track | KB Laminates Plummets 5.11% Intraday on Post-Settlement Pressure After Parent's Block Placement

Stock Track06-23

KB Laminates' stock plummeted 5.11% during intraday trading on Tuesday, following a significant decline in the previous session.

The sharp drop comes immediately after the settlement of a major block trade by its parent company, Kingboard Holdings. The parent company completed the settlement of a placement of 155 million shares, executed at a discount to the market price, introducing a near-term supply overhang as these newly placed shares enter the market.

While the proceeds from the placement are earmarked for business expansion, the completion of the transaction has created selling pressure. This occurs after the stock had experienced a massive surge of over 556% year-to-date, making it susceptible to profit-taking and increased supply.

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