On July 20, CFMEE (09630.HK) rose 5.32% in regular trading, trading at 315.0 HKD/share, with turnover of HKD 9.08 million. The rebound follows a period of intense selling pressure triggered by the full exercise of the over-allotment option.
On July 15, the company issued 1,925,750 new H shares pursuant to the full exercise of the over-allotment option at HKD 252.73 per share, raising approximately HKD 478 million in net proceeds. The issuance represented 15% of pre-offering shares, expanding total issued capital from 12,838,650 to 14,764,400 shares. The significant dilution, combined with institutional selling — including Norges Bank reducing its stake by 170,000 shares on July 3 — drove the stock down over 22% last week across multiple consecutive trading sessions.
After sustained adjustment, short-term concentrated selling pressure appears to have subsided, prompting today's technical rebound. The company's fundamentals remain supported by strong order visibility, with Q1 new orders exceeding RMB 800 million and production lines operating at full capacity.
(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.)
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