Former Internet high-flyer e-Kong Group's share price plunged more than 18 per cent yesterday to 5.9 HK cents after it proposed raising about HK$133 million via a rights issue at a big discount.
The main board-listed company planned to allow existing shareholders to subscribe to two rights shares for every common share and convertible preference share held, at 4.25 HK cents each.
This represents a 40.9 per cent discount to the shares' closing price previous to announcement of the proposal.
E-Kong operates portals which allow consumers to choose services from various long-distance call operators and insurance providers.
Its share price has plunged 88.3 per cent in the past year, after peaking at HK$4.47 in mid-February last year, when it raised HK$720 million by placing 200 million shares at HK$3.60 each.
The rights issue to boost working capital was proposed despite its cash balance of HK$85.29 million at June 30.
