Shares of MMG (HKEX: 01208) opened lower by more than 5%. At the time of writing, the stock was down 5.54% to HK$9.20, with a turnover of HK$151.248 million.

The decline follows the company's announcement of a proposed placement of nearly 706 million new shares, which is expected to generate net proceeds of approximately HK$6.253 billion.

Concurrently, the company plans to issue zero-coupon convertible bonds due in 2027, estimated to raise net proceeds of about US$813 million, equivalent to roughly HK$6.37 billion.

Combined, the equity placement and convertible bond issuance are anticipated to raise a total of approximately HK$12.623 billion. MMG intends to use the funds for refinancing existing shareholder loans and external borrowings, supporting the development and expansion of existing projects, strategic acquisitions and investments, as well as supplementing working capital and for general corporate purposes.