KB Laminates (stock code: 01888) saw its shares plummet 5.12% during intraday trading on Wednesday, following news of a major share placement by its controlling shareholder.

The sharp decline came after Kingboard Holdings, the parent company, announced plans to sell 155 million shares in KB Laminates at HK$76 each, representing an 11.5% discount to the previous closing price. The block trade is expected to raise approximately HK$11.77 billion (US$1.5 billion) and will reduce Kingboard Holdings' stake in the company from 66.62% to 61.70%.

Proceeds from the share placement are earmarked for expanding the printed circuit board business, increasing production capacity, funding research and development, and repaying existing loans. The transaction, which involves Citigroup Global Markets and Merrill Lynch (Asia Pacific) as joint placing agents, is scheduled for settlement on June 22, 2026, with a 60-day lock-up period on further share disposals by the selling shareholder.