Petra Diamonds Ltd. fell the most in more than three years after shareholder Awal Bank sold a stake in the company on the heels of positive results.
Awal sold 43 million shares, or about an 8 percent holding overnight, Petra said in a statement. The shares were priced at 190 pence. RBC Capital Markets was sole manager of the sale.
Petra fell as much as 12 percent, the biggest drop since March 2011, and was trading down 10.3 percent at 194.49 pence by 11:13 a.m. in London.
Bahrain’s central bank took Awal into administration in July 2009 after it defaulted on loans. The bank is owned by Saudi Arabia’s Saad Group. “Saad Investments Co./Awal” owned 11.9 percent of Petra as of July 8, the second-largest shareholder, according to a filing by the diamond company.
A spokesman for Petra declined to comment on the sale.
Petra yesterday reported full-year output of 3.1 million carats and a 17 percent gain in revenue to $472.6 million.
Awal Bank initially offered 28.1 million shares and later increased the size of the deal because of demand from investors, said a person with knowledge of the matter.
A further 13.2 million shares held by Awal Bank are subject to a 90-day lock-up, Petra said in today’s statement.