On June 8, Convergence Technology fell 5.32% in regular trading, trading at HK$16.94/share, with trading volume of HK$129 million. The decline is primarily attributed to continued selling pressure following the company's share placement completed on May 19.
Specifically, the company placed 138 million new shares at HK$21.00 per share, raising net proceeds of approximately HK$2.885 billion. The placement shares account for approximately 6.19% of the enlarged share capital. The current stock price now represents a discount of over 18% to the HK$21.00 placement price, with placee unrealized losses continuing to expand significantly. Market concerns over equity dilution have persisted, while potential forced selling by underwater placees has weighed heavily on the stock. Additionally, southbound capital flows have shown signs of reduction recently, with institutional net outflows further exacerbating downward pressure on the share price.
(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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