SCIENTECH (02291) saw its stock plummet 5.17% in early trading on Tuesday, following news that its controlling shareholder, Lepu Medical Technology (Beijing) Co., Ltd., had sold a significant portion of its stake in the company.

According to an announcement, Lepu Medical disposed of 11.14 million H shares of SCIENTECH through block trading at a price of HK$22.79 per share. The sale represents approximately 3.21% of SCIENTECH's total issued shares. Despite the disposal, Lepu Medical will continue to hold a substantial 77.54% of the company's issued share capital, maintaining its position as the controlling shareholder.

SCIENTECH stated that Lepu Medical remains confident in the Group's business operations, and the share disposal was intended to enhance the liquidity of the company's shares. The company emphasized that this move would not affect its day-to-day operations. However, the market's immediate reaction suggests investors are concerned about the implications of the share sale, leading to the sharp decline in SCIENTECH's stock price.