Shares in Kingboard Chemical Holdings slumped 6.29 per cent yesterday to close at $6.70 after the printed circuit-board maker's controlling shareholder disposed of 11 per cent of its interest in the firm. 'We are happy to see the closing price is higher than the placement price ... that means we have not underpriced the stock,' said Kola Luu, the head of equity capital markets at ABN Amro Rothschild, the placing agent of the deal. Hallgain Management, a majority shareholder of Kingboard, sold 60 million shares at $6.50 a share, representing a discount of 9 per cent to the closing price of $7.15 on Wednesday. It will buy the same number of new Kingboard shares at the same price. Following the placement, Hallgain's interest in Kingboard will be diluted to 37 per cent from 41 per cent. 'This is the largest top-up placement so far this year,' Mr Luu said. 'Unlike Esprit, this is a 'real' fund-raising activity for the company. And the market will see more funding activities from the manufacturing companies.' Kingboard's placement generates cash of $380 million, which will be used to fund the company's expansion and repay debt. Management had said earlier the global printed circuit-board business was close to bottoming. Kingboard announced a net profit of $301.28 million for the nine months to December. This compared to a net profit of $338.95 million for the previous year to March. The company has changed its year-end date from March to December. In light of the recent attractive export story, Kingboard's share price has risen by 19.16 per cent in the past month. However, some analysts are cautious due to a gearing ratio of more than 55 per cent after last year's 700 million yuan (HK$656.32 million) acquisition of a hydropower plant in Yingde, Guangdong province.