Boqii Shares Plunge 30.75% on Dilutive Offering as Two-Day Selloff Erases 82.26% Value

The share price of Boqii Holding Ltd. (NYSE: BQ) fell to its lowest level since September 2025 on November 4, 2025, with an intraday decline of 30.75% amid a two-day selloff wiping out 82.26% of its value. The stock’s collapse followed the company’s announcement of a registered direct offering, which triggered investor concerns over equity dilution and undervaluation.

The offering involves the issuance of 1.5 million Class A ordinary shares (or pre-funded warrants equivalent) at $2.80 per share, a price discounted relative to recent trading levels. This move, expected to raise $4.2 million, has diluted existing shareholders’ stakes, eroding confidence in management’s capital allocation. The lack of transparency regarding how proceeds will be used—whether for operational expenses, debt reduction, or growth initiatives—further fueled skepticism. Investors interpreted the offering as a sign of financial strain, with the discounted pricing perceived as an undervaluation of the company’s equity.

Boqii’s reliance on equity financing highlights broader challenges in a competitive market. While the company operates as a leading player in China’s pet industry, its strategy to raise capital through dilutive means risks alienating long-term investors. The expedited nature of the offering, facilitated by a pre-approved shelf registration, underscores urgency but may signal liquidity constraints. With no immediate clarity on strategic direction or financial health, the market’s reaction reflects a loss of trust in the company’s ability to balance capital needs with shareholder value preservation. The outcome of this fundraising will be critical in determining Boqii’s path to regaining investor confidence.