DEEPEXI TECH's stock price fell sharply by 5.18% during intraday trading on Friday, as investors reacted negatively to the company's recent capital raising activity.
The decline followed the completion of a placement of 7,942,000 new H shares at HK$50.58 per share, representing a significant discount of approximately 19.78% to the prior closing price. The placement raised net proceeds of approximately HK$395 million but increased the total issued shares from 326.63 million to 334.57 million, triggering concerns over the dilution of existing shareholders' equity.
While the company indicated that the proceeds would be used for overseas market expansion (70%), strategic investments (20%), and working capital (10%), and recently announced a strategic cooperation agreement with Lenovo PCCW Solutions, these positive developments were overshadowed by immediate dilution worries, prompting selling pressure in the market.
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