On June 18, Longpan Technology (02465.HK) fell 5.13% in regular trading, trading at 12.91 HKD/share, with turnover of 54.64 million HKD. Notably, the stock has now dropped below the placement price of 13.09 HKD per share.

The decline is primarily driven by the continued market reaction to the companys placement agreement announced on June 16. Longpan Technology plans to issue up to 15 million new H-shares at 13.09 HKD per share, representing an approximately 8.91% discount to the then-closing price of 14.37 HKD. The placement is expected to raise net proceeds of approximately 194 million HKD, with about 58.69% allocated to general working capital for the Jintan project and about 41.31% used to partially repay a China Minsheng Bank Nanjing branch loan of RMB 130 million maturing in August.

The discounted placement directly dilutes existing shareholder equity. Additionally, the companys controlled subsidiary was required to pay back taxes and late fees totaling RMB 28.61 million, which will be recorded in current period profit and loss. These multiple headwinds have driven the stock lower for a second consecutive trading day.

(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.)