Food Empire's stock plummeted 3.98% during intraday trading on Thursday, as investors reacted to the company's detailed disclosure regarding the utilization of proceeds from recent capital-raising activities.

The company announced that it has allocated funds from its earlier US$40 million issue of 5.5% redeemable exchangeable notes and the placement of 17.0 million treasury shares, which generated S$42.84 million in gross proceeds. From the note issue, Food Empire spent US$19.1 million, including US$5.0 million on capital expenditure for Empire Manufacturing Kazakhstan LLP and US$12.7 million on capital expenditure for Indus Coffee (Vietnam) Co., Ltd.

The disclosure of these capital allocations, particularly the significant expenditures in Kazakhstan and Vietnam operations, along with the dilution from the treasury share placement, appears to have triggered investor concerns during the trading session.