KE Holdings (BEKE) Falls as Firm Hints at Share Issuance

KE Holdings Inc. (NYSE:BEKE) is one of the 10 Stocks Crash Hard on a Roaring Monday.

KE Holdings ended two straight days of losses on Monday, shedding 4.32 percent to finish at $17.74 apiece after the company hinted at issuing additional shares.

While no specifics have been divulged, a potential follow-on offer was among those approved by shareholders during its recently concluded annual general meeting last week.

According to KE Holdings Inc. (NYSE:BEKE), the directors of the company were granted a general unconditional mandate “to allot, issue and deal with additional Class A ordinary shares or equivalents and a general unconditional mandate to repurchase the company’s own shares, respectively.”

Typically, existing investors take issuance of new shares in a negative light, given its potential to dilute the value of existing stocks.

KE Holdings Inc. (NYSE:BEKE) also announced the approval of its shareholders for the re-election of Jeffrey Zhaohui Li as a non-executive director, and Xiaohong Chen as an independent non-executive director.

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Disclosure: None. This article is originally published at Insider Monkey.