(Yicai Global) July 21 -- Shares in Zhangzhou Pientzehuang Pharmaceutical plunged by the exchange-imposed daily limit today after its majority shareholder announced yesterday that it will sell 1 percent of stock to raise funds.

Pientzehuang’s share price [SHA:600436] closed down 10 percent at CNY440.78 (USD68). The news of the paring came the same day the stock hit a new high of CNY491.88.

Zhangzhou Jiulongjiang Group will sell six million shares within the next three months, the Chinese medicine manufacturer said. At today’s price, Jiulongjiang Group stands to cash in CNY3 billion (USD464.1 million).

The exact timing, the amount and the pricing of the share sale have yet to be determined, Zhangzhou, southeastern Fujian province-based Pientzehuang added. The reduction in equity will not affect the company’s governing structure or operations.

It brings a halt to a remarkable rally. Pientzehuang’s namesake hangover pill has doubled in price recently due to a chronic shortage of one of its key ingredients. The herbal tablets are a popular treatment for hangovers and liver conditions. As heavy drinkers rushed to stockpile, the company’s share price reached new heights.

Editor: Kim Taylor