Four technology-related stocks have seized on a rally in the sector to tap the market for a combined $824.47 million in equity fund-raisings.
The funds were all ear-marked for technology investments, but brokers expect second-tier stocks will face downward pressure due to the collective share placement activities.
Trading and investment company Ocean-Land Group issued 150 million new shares at $1.35 each to raise $202.5 million. The stock closed at $1.53 yesterday.
About half of the proceeds will be used to acquire a 70 per cent interest in United States-based information technology company Dynamic Management to develop an on-line book store with the mainland's largest book seller, Xinhua Bookstore.
Paul Y-ITC Construction Holdings also cashed in on the phenomenal rally in New World Cyberbase this week.
It raised $328.25 million by disposing of 130 million shares of Cyberbase at $2.525 each, representing a 13.67 per cent discount to the stock's closing price of $2.925 yesterday.
On-line brokerage Celestial Asia Securities Holdings placed 428 million new shares at 49 cents each, representing a 14.03 per cent discount to the share's last traded price of 57 cents.