This sharp pullback ends a three-session rally that saw the company’s valuation climb by 20%. Under the current proposal, MMG intends to raise 6.27 billion Hong Kong dollars by issuing nearly 705.9 million shares at 8.88 Hong Kong dollars each—a price reflecting an 8.8% discount to Monday’s close. Investors also reacted to the company's plan to issue 800 million U.S. dollars in zero-coupon convertible bonds maturing in 2027, which carry an initial conversion price of 10.21 Hong Kong dollars per share.

The firm, majority-owned by state-backed China Minmetals Corp., is working with a banking syndicate including Citi, BofA Securities, and Morgan Stanley to finalize the deal. While the capital will support project development and potential acquisitions, the market remains cautious. This move follows the company’s earlier entry into the bond market in 2025, when it issued 500 million U.S. dollars in convertible debt to address offshore liabilities.