PHANCY's stock price plummeted 7.29% during the pre-market session on Wednesday, following the company's announcement of a significant share placement.

The sharp decline is attributed to PHANCY's plan to issue up to 38.80 million new H shares at a placing price of HK$40.36 per share, representing an 11.95% discount to its previous closing price. This equity dilution at a discounted rate typically pressures the stock price as it increases the share count and offers new shares below the market value.

According to the company's announcement, the placement aims to raise approximately HK$1.56 billion in net proceeds. The funds are allocated with 80% designated for acquiring heterogeneous AI computing equipment to support the group's API infrastructure, and the remaining 20% for global business expansion and potential acquisitions in technology services.