In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a disappointing decline. At the time of writing, the benchmark index is down 0.55% to 7,745.1 points.
Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:
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AVITA Medical Inc (ASX: AVH)
The AVITA Medical share price has continued its slide and is down a further 3% to $3.24. Investors have been selling the regenerative medicine company's shares since the release of a disappointing first-quarter sales update last week. Avita downgraded its quarterly revenue guidance to be in the range of US$11 million to US$11.3 million. This compares to its previous guidance of US$14.8 million to US$15.6 million. This morning, Bell Potter responded to the update by downgrading its shares to a speculative hold rating and slashing the price target on them to $3.50 (from $6.85).
Nextdc Ltd (ASX: NXT)
The Nextdc share price is down almost 6% to $15.75. This has been driven by the data centre operator completing the institutional component of a major capital raising this morning. Its institutional entitlement offer raised gross proceeds of approximately $937 million at an 8% discount of $15.40 per new share. NextDC will now push ahead with its retail entitlement offer to raise a further $384 million. Management notes that the "raising ensures NextDC is positioned to continue to take advantage of the unprecedented growth in demand for data centre services."
Predictive Discovery Ltd (ASX: PDI)
The Predictive Discovery share price is down 9% to 22.7 cents. Investors appear disappointed with the outcome of the pre-feasibility study (PFS) for the Bankan Gold Project in Guinea. Nevertheless, management was very happy. It said: "Completion of the PFS now confirms the Project is not only one of the largest gold discoveries in West Africa for a generation, but also a future Tier-1 gold mine. It can become Guinea's largest gold mine, with average annual production of 269koz over the currently defined mine life of 12 years."
Star Entertainment Group Ltd (ASX: SGR)
The Star Entertainment share price is down 5.5% to 47.7 cents. Investors have been selling this struggling casino and resorts operator's shares since the release of a trading update last week. Star reported net revenue of $419.2 million for the three months, which is down 4.6% from $439.5 million in the prior corresponding period. Management blamed the weakness on its Premium Gaming Rooms (PGRs) revenue. In other news, public hearings in connection with the inquiry being undertaken by Mr Adam Bell SC are kicking off today.
