(Yicai Global) Dec. 2 -- Shares of Longfor Group Holdings tumbled after the Chinese property developer said it will issue new shares to raise HKD2.35 billion (USD303.1 million) in funds.

Longfor's stock price [HKG: 0960] plunged 12.2 percent to HKD44.6 (USD5.80) intraday today, the steepest single-day decline since Sept. 2017. The equity hit an all-time high of HKD51.95 on Nov. 30 after rising over 20 percent this year, based on the firm's solid business performance.

Charm Talent International, Longfor's biggest shareholder under Chairwoman Wu Yajun, will sell 100 million shares at HKD47 apiece and subscribe to 50 million new units at the same price, representing a 7.5 percent discount to yesterday's closing price, the Chongqing-based firm said in a statement today. The 100 million units equal almost 1.7 percent of the company's total share capital after the issuance.

Longfor considers the top-up placing as the most efficient way to raise funds and all the proceeds will be used as working capital, it said.

The company has been faring well despite the Covid-19 pandemic. Longfor's net profit jumped 12.1 percent to CNY5.3 billion (USD808 million) in the first half from a year ago, according to its earnings report. Its revenue rose 32.6 percent to CNY51.1 billion (USD7.8 billion).

Editors: Dou Shicong, Emmi Laine