Why Rox Resources, Telix, TPG Telecom, and Xero shares are dropping today

These shares are ending the week in the red. But why?

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Key points

  • Rox Resources plummeted 15% following its announcement of a $200 million fundraising effort, despite management's confidence that this positions the company well for future operations and development.
  • TPG Telecom saw a dramatic 30% drop as it traded ex-dividend after announcing a substantial capital return to shareholders post-sale of its fibre assets, highlighting a shift towards a more focused, mobile-led business strategy.
  • Xero, alongside other ASX tech stocks, faced a 2% decline in response to a tech selloff triggered by overnight movements on the Nasdaq, while Telix Pharmaceuticals fell 2.5% amid legal challenges in the U.S. concerning alleged misleading statements.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. At the time of writing, the benchmark index is down 1.35% to 8,634.6 points.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Rox Resources Ltd (ASX: RXL)

The Rox Resources share price is down 15% to 38.5 cents. This morning, this gold developer announced that it has received firm commitments to raise approximately $200 million via a placement to a range of high-quality international and domestic institutional investors. This includes a cornerstone investment of $60 million from L1 Capital, which is a leading global investment manager. Management believes it is now well positioned to conclude debt negotiations, which have already attracted significant interest from leading finance providers, and establish itself as Western Australia's next gold producer. First gold is expected by the middle of 2027.

Telix Pharmaceuticals Ltd (ASX: TLX)

The Telix Pharmaceuticals share price is down 2.5% to $14.62. This may have been driven by news that several law firms have filed class actions against the radiopharmaceuticals company in the United States. They stated: "The Telix Pharmaceuticals class action lawsuit alleges that throughout the class period defendants made false and/or misleading statement and/or failed to disclose that: (i) defendants materially overstated the progress Telix Pharmaceuticals had made with regard to prostate cancer therapeutic candidates; and (ii) defendants materially overstated the quality of Telix Pharmaceuticals' supply chain and partners."

TPG Telecom Ltd (ASX: TPG)

The TPG Telecom share price is down 30% to $3.89. This has been driven by the telco's shares going ex-dividend today for a major capital return. Following the sale of its fibre assets and Enterprise, Government, and Wholesale (EGW) business to Vocus, TPG announced a return up to $3 billion to shareholders through a pro rata capital reduction and cash distribution of up to $1.61 per share. These funds will be paid to eligible shareholders later this month on 24 November. TPG Telecom's CEO, Iñaki Berroeta, said: "The proposed capital return marks a significant milestone in TPG Telecom's transformation into a simpler, mobile-led business – one that delivers a more efficient cost structure and a solid foundation for growth, both now and into the future."

Xero Ltd (ASX: XRO)

The Xero share price is down 2% to $124.81. Investors have been selling Xero and other ASX tech stocks on Friday following a selloff on the tech-focused Nasdaq index overnight. This has seen the S&P/ASX All Technology Index drop by almost 2.5% this afternoon.

Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Telix Pharmaceuticals and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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