Ascletis Pharma Inc (ASCLETIS-B) saw its stock price plummet by 9.64% during Tuesday's trading session, following the company's announcement of a new share issuance. The pharmaceutical firm revealed plans to issue 28.8 million new shares at a price of HK$16.45 per share.

The significant drop in stock price is a common reaction to share issuances, as such moves often lead to dilution of existing shareholders' stakes. When a company issues new shares, it increases the total number of outstanding shares, potentially reducing the ownership percentage and earnings per share for current stockholders. This dilution effect typically puts downward pressure on the stock price as the market adjusts to the new share structure.

While share issuances can provide companies with additional capital for growth, research and development, or debt repayment, they often face short-term negative market reactions. Investors will likely be watching closely to see how Ascletis Pharma plans to utilize the funds raised from this new share issuance and whether it will translate into long-term value for shareholders.