Huaneng Power International Inc. slumped the most in more than four months in Hong Kong trading after saying it plans to raise about HK$5.69 billion ($734 million) in a share placement.
The stock declined as much as 7.5 percent, the biggest decrease since July 2, to HK$7.48 and traded at HK$7.55 as of 10:22 a.m. local time on Friday. The benchmark Hang Seng Index fell 1.9 percent.
The Chinese power operator will sell 780 million new shares at HK$7.32 to as many as 10 investors, Huaneng Power said in a statement to the Hong Kong stock exchange on Friday.
The price represents a 9.5 percent discount to the Thursday close of HK$8.09. Huaneng Power will use the proceeds to repay bank loans and fund working capital, according to the statement.
— With assistance by Feifei Shen