Shares of Sunac China Holdings Ltd. (01918) plummeted by nearly 28% on Wednesday, October 17, adding to the woes of the embattled Chinese property developer. The sharp decline came after the company announced plans to raise around HK$1.2 billion (approximately $155 million) through a discounted share placement and subscription.

The Tianjin-based developer revealed that it would issue up to 489 million new shares at a price of HK$2.465 per share, representing a steep 20% discount to the previous closing price. The proceeds from the share offering will be used to support the company's debt management efforts, particularly addressing its onshore corporate bonds.

Sunac's move to raise additional capital through an equity offering is a rare one among Chinese developers as the industry continues to grapple with tightening regulations and a sluggish property market. The announcement of the share sale further exacerbated investor concerns over the dilutive impact and the broader challenges facing the real estate sector in China.