On June 5, Morimatsu International fell 5.18% in regular trading, trading at HKD 10.4 per share, with trading volume of HKD 28.80 million.
On the news front, the company announced on June 3 that it issued 25.91 million new shares due to qualified employees exercising pre-IPO stock options at a strike price of only HKD 1.2949 per share, representing approximately 2.08% dilution to existing shareholders. Meanwhile, Board Chairman Matsuhisa Kouki sold a combined 734,000 shares on June 1 and June 2, totaling approximately HKD 7.57 million in proceeds, further intensifying market concerns over insider confidence.
The stock had previously surged over 19% on June 1 following a semiconductor-related contract announcement, but has since faced sustained selling pressure amid profit-taking, earnings headwinds with full-year net profit declining 18.7% year-on-year, and the latest dilution and insider selling developments.
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