Changes in Hong Kong stocks | Cambridge Technology (06166) is now down more than 4%, and plans to allocate more than HK$6.5 billion in shares and convertible bonds to expand production of high-speed optical modules

The Zhitong Finance App learned that Cambridge Technology (06166) fell more than 9% in the intraday period. As of press release, it decreased by 4.51% to HK$105.8, with a turnover of HK$1,012 million.

According to the news, on October 8, Cambridge Technology announced that it plans to raise HK$6.535 billion. The financing took the form of about 70% convertible bonds +30% share placement. If the placement and share conversion are completed successively, the total share capital of the company will increase from about 368 million shares to about 423 million shares, an increase of about 14.8%, and the share share of A shares will be diluted from 74.84% to 65.20%.

According to the announcement, the funds raised will be used to increase optical module production capacity, make strategic investments in selected upstream enterprises, and supplement working capital. The company plans to increase the annual production capacity of high-speed optical modules by at least 10 million pieces by the end of 2027 to meet demand for 800G, 1.6T and NPO products, and distribute additional production capacity to Jiashan, Malaysia, Mexico and the United States; the company's on-hand order growth rate is higher than the production capacity growth rate.