Shares of Sembcorp Industries, Singapore's rig-builder and utilities firm, took a beating on Thursday after a Dow Jones report said it was considering a rights issue.

As it turned out, the firm was seeking approval as usual at its upcoming annual general meeting on April 20 for a share issue mandate - an exercise it carries out every year since 1998. But even this clarification did not stem its share price plunge of 17 cents to $2.07.

Just before 9am, wire agency Dow Jones put out a report highlighting that Sembcorp had submitted a statement to the Singapore Exchange (SGX) that it would be considering a rights issue at its upcoming AGM on April 20.

Jittery investors immediately bailed out of the counter, which saw it fall from $2.24 to a low of $2.09 - until the firm requested a trading halt at 10.40am.

Sembcorp later issued a statement which clarified that 'this resolution should not be taken as a disclosure that it is currently embarking on a rights issue.'

Such annual resolution is in line with market practice by listed companies, and the intent is to give the firm flexibility to raise capital expeditiously should the need arise, said Sembcorp.

Its trading halt was lifted at 11.30am and its share price recovered somewhat to $2.14 before closing at $2.07.