HK Stock Market Move | DALIPAL HLDG (01921) falls more than 12% and plans to discount around 12% of the old shares before issuing new shares, with a net fundraising of approximately HK$385 million.

DALIPAL HLDG (01921) fell more than 12%, as of the time of writing, dropping by 12.17% to HK$5.27, with a trading volume of HK$4.11 billion. On the news front, DALIPAL HLDG announced this morning that it has entered into a placing and subscription agreement with its holding company, Shengxing Limited, and placement agents, to issue and sell up to 74.25 million shares to at least six independent placees in a pro-rata basis, representing approximately 4.7% of the enlarged share capital of the company. The placing price is HK$5.28 per share, representing a discount of approximately 12% to the closing price on April 27. After the completion of the placement, the company is expected to raise approximately HK$3.92 billion, with an estimated net proceeds of approximately HK$3.852 billion. The company intends to use the net proceeds for general working capital of the group and for general corporate purposes.