PETALING JAYA: Eastern & Oriental Bhd (E&O) shares tumbled as much as 21.5 sen or 19.7% to 87.5 sen after announcing plans to raise up RM550.3 million.
At 12.10pm, the stock was trading 20.5 sen or 18.8% lower at 88.5 sen on 1,6145,800 shares done.
Short selling of E&O shares has been suspended due to the sharp fall in share price.
The property developer yesterday announced that it will undertake a private placement and rights issue with warrants to fund the Seri Tanjung Pinang Phase 2 (STP2) project and repayment of bank borrowings.
STP2 is E&O’s key development project which will be completed in phases over 15 to 20 years.
Under the maximum scenario, RM200 million raised will be used for repayment of borrowings, RM300 million for property projects, RM48.8 million for general working capital and RM1.5 million for estimated expenses of the proposed exercise.