What factors drove the significant price increase in RAYA?

The stock price of RAYA has experienced a significant increase of 16.36% on July 30, 2025. Erayak Power Solution Group Inc. (RAYA) recently underwent a registered direct offering (RDO) of 30,612,246 Class A ordinary shares and pre-funded warrants, raising approximately $3 million. Such capital raises can lead to equity dilution, which may be a concern for investors.

|code|Ticker|Name|Date|Post-Market Percentage Change|Pre-Market Percentage Change|market_code|
|---|---|---|---|---|---|---|
|RAYA|RAYA.O|Erayak Power|20250730|35.390625|3.4545454545454524|186|

The company allocated the funds to upgrading its automated warehousing system, advancing product development, expanding sales and marketing efforts, and supporting working capital. This capital infusion is aimed at strengthening Erayak’s competitive edge and operational efficiency in the power supply sector.

The strategic move of securing funding to enhance operational capabilities and market position can positively influence investor confidence and stock prices. However, the market may react negatively if the additional shares dilute existing shareholders’ equity or if the company fails to meet expectations with its new initiatives.

In conclusion, the significant price increase in RAYA was likely driven by the company's strategic financing move and the potential for growth it implies, rather than a fundamental change in the company's fortunes.