Horizon Robotics (09660) saw its stock price plummet by 5.91% in early trading on Thursday, following the announcement of a significant share placement. The company revealed plans to place 681 million existing shares at HK$6.93 per share, representing a substantial discount to the stock's previous closing price.

According to the company's statement, Horizon Robotics expects to raise estimated net proceeds of HK$4,674.0 million from the subscription. While this capital injection could provide the company with additional funds for operations and expansion, the market reacted negatively to the news, likely due to concerns about share dilution and the discounted price of the placement.

The sharp decline in Horizon Robotics' stock price reflects investors' immediate response to the share placement announcement. Such large-scale placements often lead to a short-term drop in stock prices as the market adjusts to the increased supply of shares and the discounted price offered to new investors. However, the long-term impact will depend on how effectively the company utilizes the raised capital to drive growth and create value for shareholders.