On June 23, Pateo Connect (02889.HK) fell 6.69% in regular trading, trading at HK$150.6/share, with turnover of HK$15.52 million. The stock has now decisively broken below the HK$173.40 per share placement price, leaving all new placement subscribers in a loss position.

The company completed the issuance of 2,259,300 new H shares on June 22 at HK$173.40 each, raising net proceeds of approximately HK$382 million. The placement price represented a discount of roughly 17.59% to the pre-announcement closing price of HK$210.4. Approximately 80% of the proceeds are earmarked for strategic acquisitions in AI and chip-related sectors under the company's integrated software-hardware-chip-cloud strategy, with 20% allocated to working capital.

Since the placement announcement on June 17, the stock has declined over 28% cumulatively. Although the founder and CFO collectively purchased over HK$41 million worth of shares between June 18 and 22, the buyback scale remains modest relative to the HK$382 million placement size and has failed to stem selling pressure. The steep discount placement, combined with dilution concerns and profit-taking from earlier gains, continues to weigh heavily on sentiment.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)