Shares in underground mall developer Renhe Commercial Holdings tumbled more than 9 percent after resuming trade on Thursday afternoon following the company's announcement of a share placement.
As at 0756 GMT, the stock was down 9.3 percent at HK$1.85 after hitting an earlier low of HK$1.79, down 12.3 percent.
The company said in a statement to the Hong Kong stock exchange it was placing 3 billion shares with investors at HK$1.86 per share.
The placement price represents a discount of about 8.8 percent to the stock's last closing price of HK$2.04, it said.
The shares, to be placed by sole bookrunner UBS Hong Kong with not less than six professional, institutional and individual investors, represent about 15 percent of the company's issued share capital and 13.6 percent of its enlarged share capital.
Proceeds from the subscription are estimated to reach HK$3.58 billion, which will be used for the acquisition of the operation rights at new underground shopping sites, it said.
For statement please click here 0716172.pdf
Renhe Commercial said earlier in the day it would buy six underground shopping centre sites in China's Dalian, Harbin and Weifang for a total of about 834 million yuan, adding 226,422 square metres to its current projects portfolio.
Separately, a source with direct knowledge of the matter said the China arm of U.S. venture capital giant Sequoia Capital retained its stake in Renhe and did not join the sale.
Sequoia Capital China and Hong Kong's New World Strategic Investment announced in early 2008 that they jointly invested 2.3 billion yuan ($336.7 million) in Renhe before the company went public. Sequoia Capital China holds nearly 1 percent of Renhe Commercial.
(Reporting by Nerilyn Tenorio and George Chen; Editing by Valeie Lee)