How China Ruyi’s HK$2.21 Billion Follow-on Offering Will Impact China Ruyi Holdings (SEHK:136) Investors

Simplywall
2025.12.22 22:20
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China Ruyi Holdings Limited raised HK$2.21 billion through a follow-on equity offering, issuing 790,000,000 new shares. This capital raise impacts the company's equity base and funding flexibility, influencing investor views on future growth plans. The offering strengthens the balance sheet but raises dilution concerns. The stock is trading below fair value, and the main question is whether the new capital will lead to higher-quality growth or lower returns on equity and earnings per share.