GLOBAL NEW MAT (06616) experienced a sharp, heavy-volume sell-off before noon, with its intraday price hitting a low of HK$8.8, representing a drop of over 26% from the previous day's closing price. As of the time of writing, the stock was down 10.44%, trading at HK$9.78, with a turnover of HK$172 million.
The recent announcement from GLOBAL NEW MAT stated its intention to issue convertible bonds with a total principal amount of HK$1 billion. Based on an initial conversion price of HK$10.19 per share, the bonds can be converted into approximately 98.1354 million new shares, equivalent to about 7.92% of the existing issued share capital.
The company will apply for the convertible bonds to be listed and traded on the Vienna MTF and will also seek a listing for the new shares to be traded on the Stock Exchange of Hong Kong.
