HANSOH PHARMA (03692) saw its stock price plummet by 5.20% in the pre-market session on Wednesday, following the company's announcement of a significant share placement plan. The pharmaceutical firm's shares reacted negatively to the news of a placement of 108 million new shares at a discounted price.

According to the company's statement, HANSOH PHARMA plans to place 108 million new shares at HK$36.30 per share, representing a discount of approximately 6.49% to the previous day's closing price of HK$38.82. This placement will increase the company's total issued shares by about 1.78%. The discounted price and potential dilution of existing shareholders' stakes likely contributed to the sharp decline in the stock's value.

The pharmaceutical company aims to raise net proceeds of approximately HK$3.897 billion from this placement. HANSOH PHARMA has outlined plans to utilize these funds for various strategic initiatives. About 65% will be allocated to research and development of new innovative drugs and licensing of innovative drugs and technology platforms. Another 25% is earmarked for constructing new manufacturing facilities and upgrading existing laboratories and production facilities. The remaining 10% will be used for working capital and general corporate purposes. Despite the short-term stock price impact, these investments could potentially drive long-term growth for the company.