By Ian Walker
Shares of Challenger Energy Group PLC fell 70% in early trading on Thursday after the company said it had raised 5 million pounds ($6.7 million) through a heavily discounted share offering announced late Wednesday.
The London-listed oil and gas company said it issued 5.02 billion new ordinary shares at 0.10 pence each in the placement and subscription, compared to its closing price of 0.57 pence on Wednesday.
On Wednesday evening, Challenger announced that it was raising £6m through a placement, equity subscription and open offering. It had planned to raise £4 million through the placement and subscription and £2 million through an open offer to shareholders of 1.34 to one.
The company plans to use the money raised for its restructuring as well as its development program in Suriname and Trinidad and Tobago.
Shares at 0828 GMT were down 0.40 pence to 0.18 pence.
Write to Ian Walker at [email protected]
Corrections & Amplifications
This item has been corrected at 08:10 GMT to reflect that Challenger Energy Group plans to raise £4 million via placement and subscription and £2 million via an open offer to shareholders of 1.34 to one. The original version incorrectly stated that the open offer was 2.51 to one in the third paragraph.
Challenger Energy Group expects to raise £4 million through the placement and underwriting and £2 million through a 1.34-to-one open offer to shareholders. “Challenger Energy Shares Dive on Heavily Discounted Fund Raising” at 08:40 GMT on Thursday incorrectly stated that the open offer was 2.51 to one.