SEAZEN (01030) opened sharply lower by nearly 7% in Hong Kong trading. As of the time of writing, the stock was down 6.76%, trading at HK$2.62, with a turnover of HK$475 million. The decline follows the company's announcement of a top-up placement to raise capital. SEAZEN plans to place 198 million new shares to no fewer than six buyers, representing approximately 2.73% of the enlarged issued share capital. The placement price is set at HK$2.39 per share, which represents a discount of 14.95% compared to the closing price of HK$2.81 on February 4. The gross and net proceeds from the placement are expected to be approximately HK$473 million and HK$468 million, respectively. The company intends to utilize the net proceeds for future development, repaying maturing debt, and for general working capital purposes. Following the completion of the placement, the shareholding of the vendor, controlling shareholder Fullwin Hong Kong Investments, will be slightly diluted from 64.78% to 63.01%. The Board of Directors stated that the placement and subscription are intended to broaden the shareholder and capital base, enhance financial flexibility, and are in the overall interests of the company and its shareholders.