New | Unity Investments shares plunge on fund-raising plan

Shares of Unity Investments dropped as much as 40 per cent in morning trading on Tuesday after the company proposed raising HK$372.5 million by way of an open offer of shares at HK$0.16 a share.

Unity said it intends to use about HK$170 million for investment in listed securities in various industries “including but not limited to natural resources, health and pharmaceutical, forestry, retail, communication technology, media, online and mobile game businesses, financial institutions, software and information technology, and manufacture of juvenile and infant products”.

Another HK$170 million would be invested in unlisted securities including natural resources and other industries, with the remainder to be used as general working capital for the next two years.

Unity was trading at 4.9 HK cents at 11.10am, representing a fall of 33 per cent from Monday’s close, while the benchmark Hang Seng Index had dropped 1 per cent.