Billabong International Ltd., Australia’s largest surf-wear maker, slumped in Sydney trading after selling A$155 million ($155 million) of new shares to institutional investors at a discount.
The stock declined 36 percent to 93 Australian cents at 10:59 a.m. in Sydney, the most since Dec. 19, as it resumed trade for the first time since June 20. About 79 percent of entitlements were taken up as investors were able to buy six shares at A$1.02 apiece for every seven they already owned, Gold Coast, Australia-based Billabong said in a filing today.
The offer of shares to individual shareholders will start June 29 with the company planning to raise a total of A$225 million, it said.
The maker of Kustom shoes and Billabong clothing has had its recommendation cut to sell by analysts at Citigroup Inc. and UBS AG since reducing its earnings target on June 21 and announcing the share sale.