HK Stock Market Move | CATHAY PAC AIR (00293) fell more than 7% in the morning session, Taikoo issued HK$4.7 billion convertible bonds, which could be converted into a maximum of 5.9% stake in Cathay Pacific.

CATHAY PAC AIR (00293) fell more than 7% in early trading, down 5.93% as of the time of writing, at 12.05 Hong Kong dollars, with a turnover of 809.183 million Hong Kong dollars. In terms of news, Swire Pacific Finance, a wholly-owned subsidiary of Taikoo, announced the issuance of convertible bonds with a total principal amount of 4.7 billion Hong Kong dollars, with a preliminary exchange price of 13.18 Hong Kong dollars per share of CATHAY PAC AIR. Assuming all bonds are exchanged at the exchange price, it will be converted into approximately 357 million shares of CATHAY PAC AIR, equivalent to approximately 5.9% of the shares issued after the exchange. The stake of Taikoo will decrease to 39.2%, remaining the largest single shareholder. It's worth noting that in March of this year, Taikoo reduced its stake in Cathay by issuing shares, with an issue price of 11.74 Hong Kong dollars per share, selling a total of 153 million shares, equivalent to approximately 2.52% of the total issued shares of Cathay, cashing out nearly 1.8 billion Hong Kong dollars. At that time, Taikoo had a lock-up period of 180 days. After the issuance of shares was completed, Taikoo's stake in Cathay decreased from 47.64% to approximately 45.12%.