Philex Mining Corp., the largest Philippine metals producer, sank to the lowest level in almost four years in Manila after the company said it will sell shares at a discount.
Philex sank 7.7 percent to 9.12 pesos the close of trading, the lowest since Oct. 21, 2009. The stock was the second-biggest percentage decliner in the benchmark Philippine Stock Exchange Index, which fell 0.3 percent.
Manila-based Philex plans to sell 2.47 billion shares at 5.60 pesos each through a rights offer, according to a prospectus posted on the company’s website. That represents a 43 percent discount to yesterday’s 9.88-peso closing price.
“This is quite a hefty discount,” Astro del Castillo, managing director at First Grade Finance Inc., said by phone today. “I wont be surprised if investors push the stock to hover around the level of the offer price.”
Philex will raise 13.5 billion pesos ($307 million) from the sale, net of fees, according to the prospectus. The proceeds will be used to pay debts of 2.45 billion pesos and $80 million, and finance its Silangan mine project, according to the document.