On October 14, CIG fell 5.47% in Regular Trading, trading at HK$89.95, with turnover of HK$527 million.
The move followed continued pressure after the listing of newly placed H shares, as the market remained cautious on dilution from the company’s recent equity placement and convertible bond financing.
Background shows CIG completed the allotment and issuance of 18.446 million H shares on October 12 at HK$105.16 per share, representing about 19.91% of its pre-placement issued shares and raising gross proceeds of about HK$1.94 billion. Recent disclosures also indicated combined fundraising of more than HK$6.5 billion from the placement and convertible bonds, mainly for high-speed optical module capacity expansion, upstream strategic investment, and working capital. While the financing supports its optical module buildout, near-term dilution expectations and added share supply have continued to weigh on sentiment.
(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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