Shares of KNOWLEDGE ATLAS (02513) plummeted 5.35% during intraday trading on Wednesday, marking a sharp reversal from earlier gains.

The decline followed media reports that the artificial intelligence model company is considering a share sale in Hong Kong, with the potential fundraising size possibly reaching billions of U.S. dollars. According to the reports, Knowledge Atlas is in discussions with advisors regarding a potential share placement, which could take place as early as next month. Investors are concerned about potential dilution as the company's six-month post-IPO lock-up period is set to expire on July 8th.

Adding to the selling pressure, market commentary highlighted increased volatility surrounding the company's exploration of a secondary listing on Shanghai's STAR Market. The stock has experienced significant swings recently, with shares having fallen 10% in a previous session after nearly doubling over the preceding five trading days. This high volatility environment, coupled with the potential for new share issuance, contributed to the intraday sell-off.