Ubtech Robotics’ shares declined 2.9% to HK$83 on Thursday, underperforming the Hang Seng Index’s 0.7% gain as a sector-wide sell-off in China’s robotics sector deepened.
The drop followed a near 10% decline on Wednesday, extending losses sparked by the initial public offering of rival Unitree Robotics on the Shanghai exchange. The new listing drew investor capital away from established players, including Ubtech, which operates under the ticker `9880` on the Hong Kong exchange.
The sell-off reflects broader concerns over valuation and capital allocation in China’s robotics industry following Unitree Robotics’ debut. The company’s IPO on Wednesday triggered a rotation of funds into the newly listed stock, pressuring incumbents amid heightened competition for investor attention.
Ubtech’s shares have come under additional pressure ahead of its Extraordinary General Meeting scheduled for August 26. Shareholders are set to vote on several proposals that carry potential dilution risks, including:
* Bank financing arrangements * A proposed change in the use of previously raised proceeds * A new H-share incentive scheme
The measures, if approved, could expand the company’s share base, further weighing on existing shareholders. Ubtech did not provide additional commentary on the proposals or the broader market dynamics driving the sell-off.
