HK Stock Market Move | Cig Shanghai (06166) Falls Over 10% Again; Company Recently Announced Raising Over HK$6.5 Billion to Expand Optical Module Production Capacity

Cig Shanghai (06166) fell over 10% again. As of press time, it was down 6.67% at HK$97.9, with a turnover of HK$611 million. On the news front, on October 8, Cig Shanghai announced a proposed fundraising of HK$6.535 billion. The financing will be conducted roughly in the form of 70% convertible bonds + 30% share placement. If the placement and conversion are completed successively, the company's total share capital will increase from approximately 368 million shares to approximately 423 million shares, an increase of about 14.8%, and the A-share proportion will be diluted from 74.84% to 65.20%. Cig Shanghai plans to use 55% of the proceeds to expand optical module production capacity, 30% for strategic investment in the upstream industry chain, and the remaining 15% to supplement working capital, helping to seize market share in 800G and 1.6T high-speed optical modules and improve the layout of upstream core components such as silicon photonics and DSP. Cambridge plans to expand the annual production capacity of its high-speed optical module products by at least 10 million units on the basis of existing capacity by the end of 2027.