REMEGEN (09995.HK) saw its stock price plummet by 5.01% during the market opening on Thursday, following the company's announcement of a new share issuance. The biotech firm revealed plans to issue 19 million H shares at HK$42.44 apiece, aiming to raise approximately HK$806.4 million.

The significant drop in share price can be attributed to the dilutive effect of the new share issuance. When a company issues new shares, it increases the total number of outstanding shares, potentially reducing the value of existing shares. This often leads to a decrease in stock price as the market adjusts to the new share supply.

Investors reacted swiftly to the news, which was released before the market opened. While the capital raise may provide REMEGEN with additional funds for operations or expansion, the immediate market response reflects concerns about share dilution. As trading continues, it remains to be seen how the stock will perform and whether the company will provide further details on the intended use of the raised capital.