DEEPEXI TECH's stock price fell sharply at the open, plummeting 5.95% in early trading. The significant drop followed a multi-session rally for the company's shares.

The decline was triggered by the company's announcement of a placement agreement to issue approximately 7.94 million new H shares at HK$50.58 each. The placing price represents a substantial discount of approximately 19.78% to the previous trading day's closing price of HK$63.05. The placement is expected to raise gross proceeds of around HK$401.7 million, with net proceeds estimated at HK$395 million.

Market participants reacted negatively to the dilutive capital raising, with the new shares representing about 2.43% of the company's existing issued share capital. The deeply discounted issuance, coming after a period of strong share price performance, prompted concerns over shareholder dilution and led to profit-taking pressure at the market open.