KB Laminates Holdings Limited (stock code: 01888) saw its shares plummet 6.96% during intraday trading on Wednesday, following an announcement by its controlling shareholder regarding a significant share placement.

The sharp decline came after Kingboard Holdings Limited, the parent company, disclosed plans to sell up to 130 million shares of KB Laminates through a block trade agreement. The placement price was set at HK$21.00 per share, representing an approximate 8.7% discount to the previous closing price of HK$23.00.

The shares being sold constitute about 4.15% of KB Laminates' total issued share capital. Following the completion of the sale, Kingboard Holdings' ownership in KB Laminates is expected to decrease from approximately 71.10% to about 66.95%. Net proceeds from the transaction are estimated to be approximately HK$2.72 billion, which Kingboard Holdings intends to use as general working capital for the group.