MINISO Group Holding Ltd (MNSO) stock plummeted 7.35% in the Tuesday trading session, following the company's announcement of a US$550 million equity-linked securities offering.

The Chinese retailer of lifestyle products said it plans to use 50% of the proceeds for overseas expansion and general corporate purposes, while the remaining 50% will be allocated for share repurchase programs.

The news of the equity offering seems to have spooked investors, as it suggests the company may be facing cash constraints or seeking to raise funds for growth initiatives. The dilution of existing shares is also a concern for shareholders, as it could potentially reduce their ownership stake and earnings per share.