XXF's stock price plummeted 9.48% during Tuesday's intraday trading session following the company's announcement of a capital raising initiative.

The automobile services company plans to raise approximately HK$151 million in net proceeds through a share placing and top-up subscription. An existing shareholder will place 154.7 million shares at HK$0.98 each to at least six investors, representing about 10% of the company's existing issued share capital. XXF will then issue the same number of new shares to the seller under a top-up subscription at the same price.

Such equity financing activities typically lead to shareholder dilution, which often results in downward pressure on stock prices as the market adjusts to the increased share supply.