(Yicai Global) June 2 -- Shares in Intco Medical Technology plummeted by the exchange-imposed limit today after the president and four other members of senior management at the leading Chinese maker of disposable and durable medical equipment announced plans to sell part of their holdings.

Intco Medical’s share price [SHE:300677] crashed 20 percent to end the day at CNY114.12 (USD18). Its convertible bonds, with the ticker SZ123029, tanked 17.74 percent to CNY1,408.85 (USD221).

President Liu Fangyi intends to divest 6 percent of total share capital, or 21.8 million shares, over the six months starting from June 24, the Zibo, northeastern Shandong province-based company said yesterday. Liu is the biggest shareholder with 38.91 percent equity.

General manager Chen Qiong, two deputy GMs and the chief financial officer will also reduce their combined stake of 0.28 percent by 0.073 percent, it added.

Intco Medical makes disposable medical gloves. It has seen business boom during the Covid-19 pandemic, boosting its share price to an all-time high of CNY296.99 (USD46.52) apiece on Jan. 22. Its stock price has plunged more than 60 percent since then but is still around 15 times what it was before the pandemic.

Intco Medical is planning to nearly triple production to 120 billion disposable gloves a year by the second quarter next year, a company executive said in early May.

The medical consumables maker applied for a secondary listing on the Hong Kong stock exchange in February. The firm plans to use the proceeds to build new production bases and logistics centers in China, Vietnam and other foreign countries, it said. No mention was made of how much money it intends to raise.

Editor: Kim Taylor