Xizhi Tech-P (01879) experienced a significant intraday decline, with its stock price plummeting 5.03% during Tuesday's trading session.

The sharp drop appears linked to the company's announcement that the overallotment option for its Hong Kong initial public offering has been fully exercised. This will result in the issuance of 2.1 million additional shares at HK$183.20 each, bringing in approximately HK$363.9 million in net proceeds for the optoelectronic computing company. Dealings in these over-allotment shares are expected to commence shortly.

Market participants often view such exercises as dilutive to existing shareholders, increasing the supply of shares available for trading and potentially exerting downward pressure on the stock price in the near term.