Shares of China Resources Power Holdings Co. Ltd. (00836.HK) plummeted by 9.4% on Wednesday after the Hong Kong-listed power plant operator announced plans to raise around $500 million through a discounted share placement.

The company said it will issue 198.5 million new shares, representing over 4% of its total share capital, at a price of HK$19.70 per share. The placing price represents a 5.1% discount to the stock's last closing price of HK$20.75 on October 22.

Through the share placement, China Resources Power aims to raise approximately HK$3.89 billion ($500.5 million), with the proceeds intended to repay debt and fund general corporate purposes. The company also plans to issue an additional 168.1 million shares worth HK$3.31 billion to its controlling shareholder, China Resources (Holdings) Co. Ltd.