China Resources Holding Ltd.’s semiconductor arm lost more than 15% of its value in three days after announcing plans to sell $751 million new shares at a heavy discount and revealing the departures of key technology workers on Monday, reported Caixin.
The company, China Resources Microelectronics, the largest integrated device manufacturer (IDM) in China, plans to raise some RMB 5 billion ($751.09 million) in new share sales, each priced at RMB 37 ($5.56), a 36% discount to its closing price on Monday, according to a company notice, reported Caixin.
It is among a group of domestic semiconductor firms that have rallied strongly this year on expectation that they will get strong government support as China tries to build up the sector in the face of Washington export restrictions.
Stocks of the microelectronics unit experienced a 12% nosedive on Tuesday following the release of some 20 documents, including announcements about the new share sales proposal, staff reshuffling and third quarter financial report. On Thursday morning the price was down more than 15% to RMB 48.68 and closed the day at RMB 49.31, down by 14.95%.